Umbrella company contractors were probably relieved to hear Vince Cable announce that the government intends to review the administrative effects of AWR within the next 18 months.
During a recent speech, the business secretary also announced that the Conduct Regulations would be reviewed. He explained that a flexible labour market is an essential element of a successful economy and employers need to have the confidence to create new opportunities and take on employees.
However, the review of AWR will be limited to assessing the burden of paperwork, reporting and bureaucracy generated by the European Union’s directive.
The REC’s head of policy, Gillian Econopouly, welcomed the news and said that REC discussions with officials from BIS had already confirmed that the overall regulations would not be reviewed at this time. However, it is good news that the government is committed to identifying and addressing any unnecessary bureaucracy caused by the implementation of AWR.
She went on to say that the REC would provide the coalition with regular feedback from its members, commencing with its first post-AWR meeting this week with BIS.
Some experts believe that AWR will not have an adverse effect on the UK’s skilled flexible workforce, although less talented temporary staff working through recruitment agencies might find the duration of their assignments is shortened.
Meanwhile, excessive bureaucracy and a lack of funding have had a serious impact on a lot of small businesses. Although the Chancellor has said he is making £40 billion available to help these firms, some experts believe this alone not enough.
Jo Nockels from TaxAssist Accountants said that unless financial institutions relax their lending criteria, the scheme will not kick start growth.
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Image: magnifying glass by Tall Chris
