Osborne backs the Beecroft proposals

In a speech tonight, George Osborne calls on businesses to respond en masse to the government’s consultation on whether to exempt small businesses from unfair dismissal claims. The Chancellor will say:

‘And now we’re beginning a call for evidence on the case for a new compensated no-fault dismissal for our smallest businesses. Plenty of trade unions and others will be submitting their evidence for why we shouldn’t do this. If you think we should, and it will increase employment, then don’t wait for someone else to send in the evidence. Send it in yourself.’

The fact that Osborne is personally throwing his weight behind the Beecroft agenda is striking. It suggests that he does regard making it easier to hire and fire as one of the keys to getting the economy moving again and as important enough to have a political fight over. Indeed, there is talk in Tory circles of trying to get businesses to absolutely flood BIS with responses to the consultation.