Budget date provisionally set for 6 November 15 October 2019
Chancellor Sajid Javid has confirmed that he will deliver his first Budget on 6 November 2019 but that, in the event of a no-deal Brexit, this will be a ‘simple economic statement’ with a full Budget postponed until a later date. Mr. Javid was appointed as Chancellor back in July 2019 and stated that his first Budget would demonstrate strategies to “shape the economy for the future.” The Budget addresses tax and spending issues that will take effect from the commencement of the following tax year, so the November Budget will target changes due in April 2020. The Office for Budget Responsibility (OBR) compiles and provides all the forecast data behind the Budget and have revealed that current predictions assume that a Brexit deal is agreed and comes to fruition. This would provide the reason behind why a no-deal Brexit would prompt a delay to the Budget as these forecasts would need to be amended accordingly and would be required in order to deliver an accurate portrait of the intentions for next tax year.
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100% of tips for workers in The Employment (Allocation of Tips) Bill 16 October 2019
The Queen’s speech on 14 October included the announcement that restaurants will be required to give employees the full amount of any tips that are left for them, as one of the stipulations of a new Bill that will be passed by Boris Johnson. The new measures will be enforced under The Employment (Allocation of Tips) Bill. The Bill is one of 26 that the government plans to roll out and will ensure that 100% tip allocation is concrete in legislation to maintain the notion that individuals are rewarded for how hard they work, and that they receive fair payment that reflects that. The Queen spoke of this issue by confirming “My Government will take steps to make work fairer, introducing measures that will support those working hard." Currently, there are no measures in place to combat employers taking a percentage of the tips earned by their staff, with many renowned high street names actively making deductions from gratuities donated by customers. The new proposed Bill will put a stop to this practice and ensure that employees receive the full monetary value of the tip that they have been awarded.
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Social Market Foundation recommend that profits be translated to pay increases and training for workers 17 October 2019 The Social Market Foundation, a think-tank primarily concerned with economic prosperity, have advised that they believe new legislation should be enforced which commands that growing profits should be invested back in to pay increases for employees. There is also the suggestion that profits should also be put into funding for training for staff. The report stated that staff retention was important in the world of business and that training would be beneficial for the employer as it instils invaluable skills in employees, which can be used for business needs. Three of the primary recommendations surrounded new duties for directors, encouraging investors and new reporting requirements, to ensure compliancy. The duties for directors recommendation asserted that there should be a new stipulation in the Companies Act that companies have to actively be seen to be allowing their workers to share in the profit a company makes and that there should be some tangible way of demonstrating that this has happened. It was recommended that investors should investigate the pay and training plans in place for employees when deciding which businesses they wish to invest in. There should also be more clear and concise reporting into information surrounding training, wages, HR practices and
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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