The latest company news hitting the headlines
News round up… April
Minimum wage to rise
The national minimum wage for adults is set to rise by 15p from October. The hike will bring the minimum hourly rate for workers aged 21 and over to £6.08. The rate for apprentices will rise by 10p, 16-17 year-olds by 4p and 18-20 year-olds by 6p. The timing of the move has been criticised by small businesses, already struggling with budgets. The British Chambers of Commerce warned that the changes could further fuel youth unemployment rates by pricing young people out of work.
Growth in economy is misleading
The National Institute of Economic and Social Research has warned that the British economy remains weak despite a 0.7% growth in the first quarter. The thinktank also suggested that the Bank of England was unlikely to raise interest rates. The forecast claims that the economic growth is misleading, since it compares figures to the last quarter of 2010, when the economy was disrupted by adverse weather. Angela Eagle, the shadow chief secretary to the Treasury said, ‘Our economy should not only be making up all the lost ground from the end of last year but growing strongly on top of that… This disappointing forecast from NIESR would mean that over the last six months, and since George Osborne's spending review, the recovery has ground to a halt and our economy has barely grown at all.’
‘High Street lawyers’ revolutionising legal services
Despite being less than a year old, Quality Solicitors has announced plans to launch 100 new branches. The high street legal services ‘brand’ is being credited - and criticised - for revolutionising the field, which is set to dramatically change in six months. From 6th October non-law businesses - known as alternative business structures or ABSs - will be permitted to offer legal services under the Legal Services Act. Retail giants including the Co-op and Halifax will be among the first to take advantage of the change in the law. Crispin Passmore, strategy director at the Legal Services Board, said the new rules were about removing ‘anti-competitive restrictions… The objective is to allow lawyers to respond to consumer demand in more competitive and imaginative ways.’
Companies prepare for rewritten Bribery Act
Businesses are preparing themselves for the newly amended Bribery Act 2010, which comes into force later this year. After coming under criticism for the original draft, the Ministry of Justice reviewed the act to offer greater clarity in confusing areas, particularly those concerning bribe prevention and hospitality. Although procedures are being tightened, Justice secretary, Ken Clarke was keen to point out that ‘no one is going to try to stop businesses getting to know their clients by taking them to events like Wimbledon, Twickenham or the grand prix’. The Serious Fraud Office has received an extra £2m to enforce the new Act, which is applicable from 1st July.
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