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Small businesses will suffer if the Government proceeds with plans to increase the amount of paid holiday employees are entitled to, according to the Forum of Private Business (FPB).
A survey of the organisation’s members found that 57% did not agree with plans to boost statutory holiday entitlement from 20 to 28 days, including Bank Holidays. The FPB said extra holidays would add to the costs faced by small businesses, which were already struggling under burdens including the higher minimum wage and National Insurance contributions.
Nick Goulding, the FPB’s Chief Executive, said that the Government’s proposals would affect different firms in different ways: “While the cost across the economy as a whole may not be so great, given that many employers provide this entitlement anyway, the cost on some individual firms will be significant.”
Mr Goulding added that the constant changes introduced in employment legislation were confusing for smaller firms and added to their administration costs.
“We understand that the Government wishes to help hard-working families enjoy higher wages, better pensions and increased leisure time,” he said.
“However, if this is what they wish to do, they should look towards decreasing other costs for smaller businesses. But at a time of increasing unemployment, the Government seems to be oblivious of the knock-on effects of such proposals, however desirable they may seem.”
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