Make it easier to hire and fire staff, says IoD

A leading business group has called on the government to make it easier - and cheaper - for small businesses to hire and fire staff.

The tough line, which included scrapping the right of workers to request flexible working and training, was from the Institute of Directors (IoD) in a Budget submission sent to the Treasury today.

In its document, entitled the Freebie Growth Plan​, the IoD outlined more than 20 policies that it argued could help transform the UK economy.

The organisation said employment law reform should be a priority.

Immediate changes should include abolishing the existing rights of staff to request flexible working arrangements and time off for training.

Such rights were burdensome for companies and did little to boost flexible working or training for staff, the IoD said.

The institute's paper also called for a minimum £500 employee deposit in employment tribunals "to deter weak cases".

It said firms should be able to escape the risk of a tribunal if they dismiss an employee within the first two years of service, versus the current 12-month limit.

As well as its employment calls, the IoD called on the government to consider allowing more green belt land to be released for housing development, while the current 50 per cent top rate of income tax should be abolished by the end of the current Parliament.

"We do not want to see the UK marked out as a high tax country," the IoD's paper said. "The 50 per cent rate will raise little or no extra revenue and reduces the incentive to work, save and invest for the most entrepreneurial in our society."

The IoD also called on the coalition to go beyond its commitment to cut corporation tax to 24 per cent from its current level of 28 per cent and aim for a rate of 20 per cent by 2020.