But the 2012 Budget document includes a small section entitled 'supporting employment' under 'reforms to support growth'. The section states the Government "has accepted the Low Pay Commission's recommendation for below inflation increases to the National Minimum Wage" and "has announced significant deregulation of employment law… which includes consideration of introducing compensated no fault dismissal for micro businesses."
Speaking to HR, Matthew Howse, partner at law firm Morgan Lewis and head of the firm's labour and employment practice remarked on the "distinct lack of material in the budget dealing with employment law and cutting red tape".
He said: "There wasn't as much as we thought. Perhaps the Treasury didn't want to take away from the main thrust on tax".
But Howse does not see the lack of employment law content in the budget as too serious an issue commenting the Government is currently "talking about it and definitely doing something about it - by doing so in the budget they would have been repeating themselves".
Overall Howse believes the Government has delivered a "very business-orientated budget which should encourage employment". He said: "The corporation tax rate in particular is coming down to a very competitive rate and a decrease in the top rate of income tax will encourage high earners."
He said Government was keen to show how UK tax rates compare to the rest of the world, both to incentivise cuts and display the ensuing rates in a favourable light.
