New Delhi: Dr. Deepak Kumar Jaiswal, National Convenor of CONSENT and National President of the National Front of Indian Trade Unions (NFITU), on Saturday welcomed the Prime Minister Narendra Modi government’s new labour codes, calling them a landmark step toward ensuring dignity, safety and fair wages for India’s workforce.  

Speaking to IANS, he said the reforms reflect Prime Minister Narendra Modi’s commitment to strengthening worker justice and modernising India’s labour ecosystem in line with global standards. Dr. Jaiswal praised the provision of time-bound minimum wages, describing it as a historic initiative that will directly curb exploitation and bring long-overdue stability to labourers.

“The recent discussions with Union Minister Mansukh Mandaviya further reinforced the government’s intention to deliver reforms that genuinely benefit workers,” Dr. Jaiswal mentioned. He added that the new laws will bring visible improvements to the lives of millions of labourers.

Highlighting the focus on women in the workforce, Dr. Jaiswal applauded the rules ensuring equal pay and eliminating gender discrimination, as well as provisions for safer workplaces. He said women constitute half of the population and are increasingly part of the labour force, and the government has addressed their concerns with seriousness and sensitivity.

He also lauded the decision to extend social security coverage to more than 40 crore workers, calling it a major step that demonstrates the Prime Minister’s commitment to providing protection and respect to every Indian worker.

With 14 major organisations associated with NFITU, he said extensive consultations took place before the reforms were finalised, ensuring that workers’ voices were adequately represented. On the introduction of double wages for overtime and free health check-ups for workers above 40 years of age, Dr. Jaiswal said these measures clearly show that the Modi government places the dignity and quality of life of workers at the forefront.

Drawing a comparison with global labour systems, he said India’s laws are now moving on par with international standards. He added that while some unions in the past resorted to frequent strikes, the broader objective should always be constructive dialogue and appreciation when the government does the right thing.

Dr. Jaiswal remarked that earlier governments, including during the tenure of former Prime Minister Manmohan Singh, had not implemented such reforms despite repeated demands. He emphasised that NFITU is not politically aligned, but as a responsible trade union body, it would continue to raise its voice against any shortcomings and also acknowledge positive steps taken in the interest of workers.

Next week, the Chancellor will reveal the Government’s latest set of tax and spending policies as she also outlines her ambitions for the economy under the Labour Government.

The state of the economy is the key focal point ahead of the Budget, amid criticism from industry over the impact of the Government’s first Budget last year.

The state’s official forecaster will also lay out its key projections over how the economy is set to fare over the coming years, with fears that it could present a gloomy outlook in the short term.

Here the PA news agency looks at the importance of this Budget for the economy:

– What is the backdrop of the Budget?

The UK economy started the year with positive growth, with GDP (gross domestic product) rising by around 0.7% over the first quarter of the year.

Nevertheless, this had been boosted by stronger trade ahead of expected tariffs and came amid an increasingly uncertain global economic backdrop.

This growth has steadily slowed down as the year progressed, with the Office for National Statistics (ONS) reporting growth of 0.3% in the second quarter and 0.1% in the third quarter of the year.

The dip has come amid declines in the production sector as well as slower growth in the services sector.

Meanwhile, inflation has been elevated over the past year, striking a peak of 3.8% in July, August and September.

It dipped slightly last month – although at a slower rate than expected – but also comes amid a backdrop of falling wage growth.

Consumer finances had been supported by stronger wages but real wage growth has slowed significantly in recent months because of pressure in the labour market.

Unemployment has also lifted, striking a four-year-high of 5% in the three months to September.

– Why is the last budget important?

Weak hiring, slowing wage growth and price inflation have all been partly linked to policies which came into force following the Labour Government’s first budget last year.

The budget led to higher taxes and labour costs for many businesses when the policies came into force in April this year.

Firms were affected by the increase in the national minimum wage, higher National Insurance Contributions (NICs), reduced business rates discounts and other taxes, such as a new packaging tax.

The Bank of England highlighted that the increase in NICs and the minimum wage partly contributed to higher food price inflation earlier this year as impacted firms passed some of this on to their customers.

– What is the view of businesses ahead of the Budget?

Businesses and trade bodies have stressed that they came under pressure from the previous budget and have urged the Government to avoid hitting them with further increases.

Industry data has also shown that some business spending has been held back ahead of the Budget, with firms cautious about their financial position.

The latest monthly flash PMI economic data – which shows activity in the UK’s private sector – showed that activity was dented by cautious decision making from firms before the Budget.

– What is the view of consumers?

Consumer spending has also been broadly cautious in recent months, with Bank of England policymakers recently highlighting a focus on saving in favour of spending.

On Friday, the ONS said retail sales contracted in October for the first time in three months as shoppers also held off before the Budget.

Economists have cautioned that predicted rises in personal taxes at the Budget come mean that some consumers will reduce their spending plans rather than just delay them until nearer to Christmas.

Ruth Gregory at Capital Economics said: “The risk is that the fourth quarter isn’t a golden one for retailers and that higher taxes in the Budget restrain retail spending over the crucial festive period and going into next year.”

– Why has there been focus on the Government’s ‘fiscal hole’ and what does this mean?

The so-called “fiscal hole” is the gap between the Government’s projected spending and its projected revenues, typically through taxes or borrowing.

This is particularly important for the Government as it seeks to meet the fiscal rule that it must balance spending and revenues over the next five years.

Economists have predicted that a significant “fiscal hole” has grown since the last spending review, with spending reductions lower than expected because of failures to pass welfare cuts, increased borrowing costs and expected readjustment to productivity forecasts.

Nevertheless, reports have suggested that original predictions of a roughly £30 billion fiscal hole have now been reduced, with the Financial Times indicating the OBR think this will be nearer to £20 billion.

Last week, reports indicated the Government would therefore not push forward with expected increases to income tax as they did not need to raise as much money in order to plug this black hole.

On Wednesday, the Office for Budget Responsibility will reveal how much money new spending reductions or tax increases will generate in order to address this.

It will also unveil its latest forecasts for key economic metrics such as economic growth, unemployment and inflation.

– Will the Budget be important for the financial markets?

The Budget can impact trading in the financial markets, as has significant speculation about potential policy decisions.

Typically, the value of the pound and the price of gilts – government bonds – are the most likely to be influenced by budget policy.

Gilt yields, which rise as prices fall, ticked higher earlier this week but are still significantly lower than earlier this year as borrowing costs have drifted lower amid lower interest rates.

Both the pound and gilt prices tend to reach positively to cautious spending commitments and limited tax changes, particularly if they believe tax policy is likely to hamper economic growth or wider investment.

The FTSE 100 and other domestic equity indexes do not tend to be directly impacted by changes in domestic policy, although they can be influenced by fluctuations in the pound.

Stocks in specific sectors which are targeted by policy could however move in value.

For example, listed gambling companies have seen speculation of increased levies on sports betting press down on their share value.

The government is expected to announce an extra £1.3bn in funding for a scheme encouraging the use of electric vehicles (EVs) at next week’s Budget.

The Electric Car Grant scheme started in July as part of the move to zero emission vehicles. The government says it has helped 35,000 switch to EVs.

However, early research suggests there is little indication the scheme has attracted entirely new buyers.

There will also be money to create more charging points, and a consultation on helping people without driveways to charge their cars.

It is also possible EV owners could face a new tax elsewhere in Wednesday’s Budget in the form of a pay-per-mile charge in future.

All new cars will have to be electric or hybrid from 2030, when a ban on the sale of new petrol and diesel cars comes into force.

The Electric Car Grant scheme, which provides a discount of up to £3,750 on eligible vehicles, was launched with an initial fund of £650m.

New AutoMotive, a non-profit organisation supporting the UK’s transition to electric vehicles, found in a recent study that the scheme had yet to expand the market for EVs.

EVs covered by the scheme made up 23.8% of new registrations in September, the same as their share before the Electric Car Grant was announced, New Automotive said.

“It isn’t yet clear that it’s prompting consumers to consider buying cars that they wouldn’t have gone ahead and bought anyway,” David Farrar, policy manager for New AutoMotive, said at the time.

The Budget is also expected to announce a further £200m for speeding up the rollout of chargepoints across the UK.

Data from Zapmap shows almost 87,000 points across the UK, in about 44,000 locations. Those include places like supermarket car parks and lamppost chargers.

“The proposed funding will support the creation of thousands of chargepoints and provide extra resources for local authorities to ramp up charging infrastructure on local streets – making it easier for everyone to access reliable charging, including those without off-street parking,” the government said.

Chancellor Rachel Reeves, it added, was “expected to publish a consultation on Permitted Development Rights to make it easier and cheaper for people without a driveway to charge”.

However, it is also possible that EV owners could face a new tax in the Budget in the form of a pay-per-mile charge from 2028.

A government spokesperson told the BBC earlier this month: “Fuel duty covers petrol and diesel, but there’s no equivalent for electric vehicles. We want a fairer system for all drivers.”

Reeves is being urged not to raise taxes on drivers overall, with campaigners preparing to deliver a petition to Downing Street early next week which calls for fuel duty, long frozen, not to be increased.

Richard Holden, the shadow transport secretary, said that “handing out £1.5 billion in EV subsidies while hard-working taxpayers are squeezed dry” was “madness”.

“Ordinary families are facing increased taxes and spiralling inflation under Labour, yet the Government’s priority is handing out discounts on new electric cars,” the Conservative MP said.

Reeves is expected to increase some taxes in the Budget after saying she means to bring down NHS waiting lists, the national debt and the cost of living.