UK Politics

Sajid Javid: No fresh look at easier dismissals

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Media captionSajid Javid said he wanted to help businesses with late payments and reduce red tape

Business Secretary Sajid Javid has ruled out returning to proposals to make it easier for firms to sack staff using "no fault" dismissals.

The Beecroft report on employment law in 2012 suggested small firms be able to dismiss people without a reason, in return for paid compensation.

But the plan, which would have cut unfair dismissal cases, was blocked in the coalition by the Lib Dems.

Mr Javid told the Andrew Marr Show: "I won't be looking at that again."

The newly appointed business secretary, whose job was held by Lib Dem Vince Cable in the last parliament, said the Enterprise Bill in Wednesday's Queen's Speech would propose a series of measures to cut red tape.

"What we will be doing, though, is looking at deregulation, taking it even further.

"During the last Parliament we have saved businesses from about £10bn of costs collectively in regulation and I think we can do at least that again."

'Record sums owed'

"The other thing I want to do is help more small businesses with some of the challenges they face, not just red tape but especially the issue of late payments.

"Small businesses in our country are owed, I think, about £30bn - that's a record high in late payments so we're going to set up a small business conciliation service to help deal with that."

Mr Javid said "all sorts of issues" would be looked at, with businesses and others asked to bring forward ideas on deregulation.

He added: "I also want to take a look at regulators to see if... [they] can be made part of a system to help cut regulation on businesses."

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