Business split over Conservative volunteering plans

Business bodies are split over the Conservative plans to compel businesses to allow their staff to volunteer.

The Institute of Directors says that the policy is not thought through and not in the “spirit of philanthropy”. Instead it warns that it will put pressure on already squeezed public services.

Simon Walker, director general of the IoD, said: “This announcement not only undermines the Tory record on reducing business regulation, it also puts additional pressure on public sector employers, and ultimately the taxpayer. Frankly, the essence of volunteering is that it is voluntary.

“The IoD would welcome proposals to incentivise and make it easier for companies to facilitate volunteering, but it has to be a choice.”

However the CBI welcomed the annoucement. John Cridland, the CBI director general said it was a “win-win”.

He said: “Businesses encourage their employees to volunteer in the community and should do even more to increase this. It is a win-win for everyone concerned.”

Under the plans, the working time regulations will be amended to make clear people are entitled to 28 days’ paid holiday and three days’ paid volunteering or serving as a school governor. However critics have questioned how organisations such as the NHS could cover three extra days’ holiday for their consultants and nurses and other workers when services are already under pressure.

Meanwhile the Institute of Economic Affairs doesn’t like the plans to freeze rail fares.

Director Mark Littlewood said:: “The decision to ‘cap’ rail fares to inflation-only increases is severely misguided. As it is, price controls on rail fares have led to severe overcrowding on certain routes and at certain times, whilst rail companies are prevented from offering more flexible fares to tempt customers into changing their travelling habits and ease congestion.”