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BCC: Increasing statutory redundancy pay will not help firms retain staff

A second reading debate on the Statutory Redundancy Pay (Amendment) Bill is taking place today in the House of Commons.

Commenting, David Frost, Director General of the British Chambers of Commerce (BCC), said:

"The additional cost to business that will stem from this Bill will affect those companies that are struggling the most.

"This is the wrong time to be contemplating a large increase in statutory redundancy pay. Businesses are already having cash-flow problems and this will simply add to that.

"It will be business that drives the UK out of recession. Instead of threatening firms with extra financial burdens, politicians should be concentrating on helping employers retain their staff. Reducing regulatory burdens, reintroducing the Temporary Short Time Working Compensation Scheme and freezing the national minimum wage will all help hard-pressed companies."