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To make this work, leaders believed that the establishment of a base level of political and economic provisions for citizens would provide assurances of the foregoing. In order to implement such policies they had to be introduced on a national level through institutions and agencies that needed to be created to administer a uniform code of social and financial services. The preceding was a major factor in why social policy in Europe is more liberalized and generous than in the United States.

World War II also resulted in an elimination and or erosion of historical European monarchies and the formation of constitutional frameworks reflective of20th century thinking. The foregoing historical, political, economic and social variables are the key components blended into the European term which is the called ‘the welfare state’. The British Labour Party platform after winning the election in 1945 stated “Jobs for all” along with “Social insurance against the rainy day…” and included plans to attain said goals. The victory by the Labour Party was unforeseen and helped to establish a tone not only in Great Britain, but the rest of Europe as the public’s vote heralded the beginnings of heightened social consciousness.

1.2 Sector Ramifications – Hospitality and Catering

The preceding understanding of the United Kingdom’s social fabric is important in equating the recent legislation affecting the hospitality and catering sector. Both sectors are highly dependent on labor and as a result any new regulations or legislation have a deeper impact due to the labour dependant composition that characterizes its makeup. Said changes must not only be communicated, but overseen as well and these changes cannot be simply written into a software program or changes in assembly line methods, they are by and large done by individuals.

Additionally the general low wage composition of this sector for a good percentage of its employees means that additional compliance slows productivity as it is primarily manual in nature. The new legislation is estimated to affect and estimated 81% of the business in this sector

Economically the increase of compliance and legislative changes in the service sector as a factor of a country’s GDP decreases the economic growth rate with a corresponding decline in productivity rates due tithe costs involved. The hospitality and catering sectors are within the broader classification termed ‘Travel and Tourism’ and this industry is projected to become the largest classification globally during 2005.

As such the major issue facing the hospitality and catering sector is increasing productivity so that it will affect the profitability of operations. With this industry sector (hospitality and catering)representing an estimated 1 out of 12.4 jobs throughout all industry classifications the implications of increased productivity represents sizeable gain in economic strength and the corresponding effect upend (Gross Domestic Product).

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