The Trades Union Congress (TUC) has stated that UK employees must be protected from workplace decisions made by artificial intelligence (AI) systems.

The TUC warned that, in some instances, AI technology is making ‘life-changing’ decisions, including those in relation to line managing, hiring and firing.

AI systems are being used to analyse the facial expressions and tone of voice of job applicants during recruitment processes. The TUC said that this could lead to ‘greater discrimination at work’.

It also suggested that AI technologies could be used by employers to track their employees’ performances and make automated decisions to help to dismiss employees.

TUC Assistant General Secretary Kate Bell said:

‘AI is going to transform the way millions work in this country and is already being used across the economy to line-manage and hire and fire staff.

‘Without fair rules, this could lead to widespread discrimination and unfair treatment at work.

‘But the government is refusing to put in place the necessary guardrails to stop people from being exploited.

‘Instead of clear and enforceable protections, ministers have issued a series of vague and flimsy commitments that are not worth the paper they are written on. And they have failed to provide regulators with the resources they need to do their jobs properly.

‘It’s essential that employment law keeps pace with the AI revolution. But last month’s dismal AI white paper spectacularly failed to do that.’

Internet link: TUC website

UK inflation has dropped, but remains in double-digit levels, as the cost-of-living crisis eased slightly in March.

The annual consumer prices index dropped to 10.1% in March, down from 10.4% in February, the Office for National Statistics (ONS) reported.

It was widely expected to fall below 10%, but food prices remained stubbornly high, rising at their fastest rate in 45 years.

Increased prices for bread, cereal and chocolate meant the cost of living rose more than expected last month.

David Bharier, Head of Research at the BCC, said:

‘Prices continue to rise at an alarming rate. Driven largely by housing and food costs, this is on top of an already high growth rate from this time last year.

‘Our research shows that inflation is still by far and away the top concern for UK SMEs. This has been driven by three years of global lockdowns, supply chain crises, energy shocks, and new trade barriers with the EU.

‘Small businesses, particularly those in the retail and hospitality sector, have been the least able to absorb cost rises, and we see that most have not invested or grown.

‘Businesses need to see a reduction in the cost and burden of exporting and importing, particularly with the EU, as well as increased support to deal with the unprecedented energy price shock.’

Internet link: ONS website BCC website

Research carried out by think tank the Resolution Foundation has suggested that the size of the UK’s six-year ‘stealth tax’ threshold freeze has nearly trebled to £25 billion.

The figure is significantly higher than the previous forecast of £9 billion announced during the 2021 Budget.

A small number of tax thresholds have been frozen since 2021/22 and are set to remain frozen until April 2028. The think tank found that next year’s threshold freeze will raise £12 billion a year by the time of the final freeze in 2027/28.

Adam Corlett, Principal Economist at the Resolution Foundation, said:

‘High inflation has pushed up the projected revenue take from the government’s personal tax threshold freeze to £25 billion a year – almost triple the amount forecast when the freeze was introduced. But higher-income households will be the ones most affected by next year’s major tax rises.

‘High inflation also means benefits are being uprated by 10.1 in April, which will boost low-income households’ finances, although benefits are only set to fully catch up with price rises after April 2024’s uprating.’

Internet link: Resolution Foundation website

HMRC has reminded businesses that file VAT returns annually that the online VAT filing portal will close from 15 May 2023.

The VAT portal closed to standard quarterly filers on 7 November 2022, but was kept open for a longer period for those who file annual returns.

In emails to businesses and tax agents, HMRC urged all VAT registered businesses to use Making Tax Digital for VAT (MTD for VAT) compatible software to keep VAT records digitally and file VAT returns.

Following the closure of the portal, businesses that file VAT returns annually will no longer be able to use their VAT online account and instead must use compatible software to file future VAT returns.

HMRC said that businesses that fail to do so may have to pay a penalty.

If a business is already exempt from filing VAT returns online or if it is subject to an insolvency procedure, it is automatically exempt. Business owners can apply for an exemption if it’s not reasonable or practical for them to use computers, software or the internet to follow the MTD for VAT rules.

Internet link: GOV.UK

A £27 billion transformation of capital allowances from April was announced by Chancellor Jeremy Hunt as he delivered a ‘Budget for growth‘.

The Spring Budget followed an improved forecast from the Office for Budget Responsibility (OBR). The OBR said it expects the UK to avoid a technical recession this year, with a stronger-than-expected performance from the economy as inflation continues to fall.

The Chancellor announced that a £27 billion transformation of capital allowances from April this year will include ‘full expensing’ of investment on IT and plant and machinery for three years, plus an extension to the 50% first-year allowance in the same period.

There was also a £500 million package for research and development (R&D)-intensive businesses. In addition, Mr Hunt announced 12 investment zones across the UK, with funding for skills and support.

Reforms to childcare, which will see free care expanded for children over the age of nine months, were key to Mr Hunt’s plans to remove the barriers to work. A range of other measures were also announced to encourage parents, the disabled and the over-50s back into the workplace.

The Chancellor also made changes to the pension system to provide incentives for doctors and other highly-skilled workers to remain in the labour market.

As high energy costs continue to affect the UK, the Chancellor extended the Energy Support Guarantee (ESG) at £2,500 for another three months, while fuel duty was frozen once more.

Mr Hunt said:

‘Our plan is working – inflation falling, debt down and a growing economy.

‘Britain is on a lasting path to growth with a revolution in childcare support, the biggest ever employment package and the best investment incentives in Europe.’

Internet link: GOV.UK