SMEs Urge Labour to Support Funding and Implementation of Employment Rights Bill

Big Payout? UK SMEs Say Gov Funding is a Must

New survey shows the majority want cash to meet the new Employment Rights Bill

When Breathe HR rolled out its latest survey, it hit the nail on the head: that half of British small‑business leaders who also handle HR duties are begging for a financial lifeline from the government if they’re going to roll out the new Employment Rights Bill without breaking the bank.

Why the big splash? The piece of the puzzle broken down for you:

• 99.9% of UK companies are SMEs – the real backbone of the economy.
• They hold about 60% of all jobs in the country.
• They generate more than half of the private‑sector turnover.
• Yet 51% of those SMEs say a government grant would be an absolute game‑changer.

What the numbers actually mean

With the Autumn Budget looming on 30 October 2024, the survey is a stark reminder that the upcoming fiscal plans will either keep small businesses afloat or push them over the edge. Stakeholders are waiting to see whether the government will plug the funding gaps that many note.

Who did the survey? Quick recap:

Breathe HR asked senior leaders in British SMEs – up to 250 staff, and who also wear the HR hat, such as CEOs, founders, and HR directors – what can help them navigate the new legal landscape.

Bottom line: support, support, support. As the bill heads deeper into Parliament, UK small‑business leaders are calling for the necessary money to keep the wheels turning. And you better hope the budget delivers on that promise before the deadline hits.

SMEs call for more support

Small‑Biz Voice: “Give Us a Hand, Not Just a Handout!”

What the Survey Says

According to a recent poll by Breathe HR, more than half of small‑to‑medium business owners are craving help to navigate the upcoming Employment Rights Bill.

• 48 % say they’d love clear government guidance on what the new rules actually mean for their hiring playbook.
• 41 % want legal chat‑ups to avoid accidental rule breaches.
• 40 % think workshops for managers on the new rights would cut the learning curve.
• 31 % need slick software to juggle shift schedules and flex‑work requests without losing sleep.
• 29 % want tools to track sickness absences, especially with the new day‑one sick‑pay obligations.

Why the Pressure Is Killing the “Founder‑Hope” Myth

Gareth Burrows, the man behind Breathe HR, summed it up: “The new law feels like a backpack full of bricks on our tiny shoulders.”

“SME leaders are excited about better protections for employees, but they’re also staring at a wall of paperwork, legal fees and tech headaches. If the government doesn’t step in, the cost and time impact will crush the small‐business spirit.” — Gareth Burrows

What Small‑Biz Leaders Are Saying: “We’re the Economy’s Backbone”

Burrows points out that while big corporates can afford consultancy and pricey new systems, small firms lack that cushion.

• “The gov should earmark funds right in the next budget – otherwise, the bill will be a drain plug for the day‑to‑day grind.”
• “We’re gaining an extended window before the rules kick in. Use that time to rail rail‑her, dump training modules, and line up tech assist.”

The Bottom Line

SMEs have the backbone, but without a supportive infrastructure, the new Employment Rights Bill could become a flag‑ging nightmare. It’s a clear call for:

• Concrete financial help for compliance costs.
• Actionable, plain‑English guidance from the government.
• Free or subsidised training and software solutions.

In short, the government’s next budget should treat small businesses like whatever their size – share the same lifeline, and the whole economy can keep moving forward.

SMEs disproportionately impacted

How the New Employment Rights Bill is Affecting Small‑Biz Owners — 2025 Update

Picture this: you’re running a small or medium‑size company, and you’re hearing about a brand new law that could change the whole way you treat your staff. Would you buckle up to meet the challenge, or stay in the comfort zone? The recent survey gives us a clear, sometimes surprising, snapshot.

Who’s Saying What?

• 63% of SME bosses say the bill will hit them hard with extra cost and time to implement.
• 17% expect the rollout to cost up to £1,000 per employee.
• Only 14% of leaders think the changes won’t disproportionately affect small firms.

Why Some Keep Their Spirits High

Now, you’d think that cost worries would make the majority of small business owners grim, but it’s actually the opposite:

• 80% believe the bill is a win for employees.
• 68% feel the reforms will boost productivity within their own teams.

Yes, folks who think deeply about their staff are outnumbering those who see the bill as purely a headache.

Government’s “Give‑Me‑Time” Tactic

The government has a big, open‑handed window before the law kicks in. Here’s the timeline:

• Consultations on the legal changes are set to begin next year.
• Most of the reforms are slated to take effect no sooner than 2026.

So there’s a strategic pause, letting SMEs get their ducks in a row and, hopefully, adjust their budgets and workflows.

What’s Next for Small‑Biz Leaders?

• Fine‑tune budgets for the new £1,000/employee curve if that’s on the radar.
• Start smoothing out processes that will change cost and time for staff.
• Build morale and align with employee expectations—your 80% employee‑support is a powerful asset.
• Plan for productivity gains—you’re not the only one seeing a upside.