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Labour: Paternity leave reforms would help 400,000 families

Labour has unveiled plans for a significant boost to paternity leave if it wins the election - doubling the time fathers can take off to four weeks.

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Industry chiefs: Labour's paternity plans a 'tax on business'

Business leaders have hit back at Labour Party proposals to increase paternity leave to a month, saying it amounts to a "tax on business".

Ed Miliband announced today that, if they come to power after the general election in May, the party would not only increase time amount of time available but would increase the minimum pay.

John Longworth, director general of the British Chambers of Commerce, said the changes would have a 'real cost' to business Credit: PA

But John Longworth, director general of the British Chambers of Commerce, said small and medium-sized businesses were likely to struggle under such laws.

Although well-meaning, proposals such as this create very real costs for businesses, which can in turn lead to reduced productivity, reduced growth and fewer jobs.

Businesses have already had to absorb over half a dozen changes to parental leave in the last decade - with one, shared parental leave, not even fully in place yet. This constant instability raises costs for business and generates uncertainty when it comes to taking on new staff.

It also raises the spectre of a dad being off for a month, returning to work for a couple of weeks, and then asking for shared parental leave as soon as he is eligible - which could be hugely disruptive to small and mid-sized firms whose success depends on the talents and contributions of each employee.

Expansions of parental leave may win votes, but come at a real cost to business.

– John Longworth, British Chambers of Commerce
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Labour: Paternity leave reforms would help 400,000 families

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