Generous redundancy pay is an anchor holding back our economy. In a world that demands constant change, it penalises businesses for adapting and costs the taxpayer Billions.

The current system—where pay-outs are tax-deductible for companies but the first £30,000 is tax-free for individuals—is a flawed subsidy for inefficiency.

Redundancy, remove Income Tax relief on recipient which would generate approximately £1.6 Billion.

It's time for a radical reset. Statutory Redundancy should be capped at three months' salary. This single change would unleash business dynamism, dramatically reduce the £300 Million annual cost of the government's Redundancy Payments Service and save the Treasury an estimated £300 million per year.

A modern economy needs flexibility, not a system that makes necessary change prohibitively expensive.