News story

Business Secretary Vince Cable statement on the publication of the Beecroft report

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

“We are today publishing Mr Beecroft’s final report as submitted to our department to dispel some of the myths that have become associated with…

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“We are today publishing Mr Beecroft’s final report as submitted to our department to dispel some of the myths that have become associated with the report. Because of ongoing interest we reached a view that it is in the public interest to allow people to have access to its content.

“We have always been clear that sensible and well thought-through reforms need a strong evidence base behind them, not just anecdotal experiences.

“The UK already has one of the most flexible labour markets in the world, as evidenced by the deal struck by the Vauxhall workforce in Ellesmere Port last week. At a time when workers are proving to be flexible in difficult economic conditions it would almost certainly be counterproductive to increase fear of dismissal.

“The Government also has a duty to ensure the labour market provides economic and employment opportunities and has therefore set out a parliament-long review of employment law. As part of that review we have issued a call for evidence on no-fault dismissal for micro firms of fewer than 10 employees. I shall be examining the evidence when this is submitted to me after the 8 June.

“Mr Beecroft came and spoke to officials in the Department for Business, Innovation and Skills last year whilst compiling his report. Consequently, the vast majority of proposals in Mr Beecroft’s final report reflect ongoing work by the Department. In response to widespread concerns from small businesses we are simplifying employment tribunals with further measures in the planned Enterprise and Regulatory Reform Bill. And across Government we have announced a number of measures for CRB checks, work permits and pensions auto-enrolment to help ease the burdens on business. This has all happened independently from Mr Beecroft’s recommendations and were part of the Government’s existing programme of reform and agenda for growth.

“One of Mr Beecroft’s recommendations was a suggestion to bring in no-fault dismissal. In my daily conversations with businesses, this has very rarely been raised with me as a barrier to growth.

“Businesses are much more concerned about access to finance or weak demand than they are about this issue.”

**Notes to editors:
**1. The Beecroft report can be found here http://www.bis.gov.uk/assets/biscore/employment-matters/docs/r/12-825-report-on-employment-law-beecroft
2. See accompanying background attachment which highlights which recommendations have already been taken forward, which ones Government are considering and which ones Government are not planning on taking forward.
3. BIS’s online newsroom contains the latest press notices, speeches, as well as video and images for download. It also features an up to date list of BIS press office contacts. See http://www.bis.gov.uk/newsroom for more information.

Notes to Editors

Contact Information

Name BIS Press Office Job Title

Division Department for Business, Innovation & Skills Phone

Fax

Mobile

Email bispress.releases@bis.gsi.gov.uk

Name Henry Tanner Job Title

Division Department for Business, Innovation and Skills Phone 020 7215 5947 Fax

Mobile

Email henry.tanner@bis.gsi.gov.uk

Published 21 May 2012