Social finance changes will hurt business

The recovery of the UK economy will be damaged by the changes to retirement rights and paternity leave, according to the British Chambers of Commerce. As from 3rd April, British men whose partners return to work earlier will be entitled paternity leave of up to 6 months. The default retirement age will be defunct from this Wednesday. Lobby groups have complained that firms now have more red tape to deal with,

Just over 50% of the 1300 UK businesses that were surveyed by the BCC are expecting these new paternity rights to hurt their business and 34% of these fear that the changes will be extremely damaging. A fifth of firms are worried by changes to the retirement age. The Director General of the BCC, David Frost, has said that these changes completely go against the promises that the coalition made.

He said that instead of listening to the needs of businesses and cut down on red tape, they were doing completely the opposite. Businesses were really going to suffer through these changes and if the Government had ever been serious about reducing regulations they should seriously reconsider what they were doing and the effect it would have on the economy it is meant to be rebuilding.