Welcome to our latest Coffee Break in which we look at the latest legal and practical developments impacting UK employers
On 23 September, Kwasi Kwateng, the Chancellor of the Exchequer, delivered what has been termed a "mini-budget" containing measures impacting employers and workers. These included confirmation that the government will reverse the 1.25 percentage point rise in National Insurance contributions (NICs) from 6 November 2022 and the new Health and Social Care Levy (which was expected to be introduced in April 2023) will also be cancelled. On a practical note, HMRC has confirmed that from 6 November, the temporary message employers were asked to include on payslips explaining the reason for the NICs should be removed and that HMRC will be directing employees to their employers to correct any overpaid NICs in the first instance.
More immediately, employers and workers will naturally be concerned about the current economic outlook, with the Bank of England now stepping in to take action as it seeks to calm the markets. This week has seen more strikes announced in some sectors as the cost-of-living crisis bites. Following on from the reforms to strike law we saw in July, the government has announced that it plans to "set Minimum Service Levels… for transport, to ensure some services run during industrial action and unions cannot prevent the public making journeys that are essential for...
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