David Vance SubstackRead More
If you thought that Chancellor Rachel Reeves autumn budget last year was disastrous for the UK economy, just you wait until Deputy PM Angela Rayner’s “Employment Rights Bill” becomes law later this year. She claims it will “bolster workers’ rights” but in reality it will seriously cripple businesses, deter recruitment and drive up unemployment.
Her proposed legislation repeals previous Conservative trade union laws, lowering the threshold for strike action and making union funding of the Labour Party automatic. How terribly convenient! This is a return to “1970s-style union domination,” empowering unions to initiate strikes more easily, which will disrupt operations and lead to ruinous financial losses for businesses. Good news for Rayner’s trade union backers though!
But what does British business think of all of this?
Lord Karan Bilimoria, founder of Cobra Beer, argues that these reforms demonstrate a lack of understanding of business needs, potentially stifling economic growth at a time when stability is crucial. Other business leaders, such as Alex Baldock of Currys, contend that the bill makes recruiting “harder, riskier, and more expensive.” A British Retail Consortium poll found that 52% of retail HR directors plan to reduce staff numbers due to the bill, with an equal proportion anticipating higher prices to offset costs. The Confederation of British Industry’s president has warned that the reforms could lead to unemployment levels comparable to Spain’s, as companies become reluctant to hire amid increased regulatory burdens. Nearly half of business leaders surveyed indicate they will be less likely to recruit under the proposed laws, with some planning to curb investment. Tina McKenzie, a small business advocate, highlighted that 46% of small firms cite employment costs as a major barrier to growth, and the bill’s overhaul could exacerbate this, leading to job losses. So it’s a pretty comprehensive thumbs down from the UK business community. This won’t deter her in any way!
Since Labour took office, over 150,000 payroll jobs have reportedly vanished.
Let’s just remember that Rayner, along with the rest of the Cabinet, has zero private-sector experience and is completely out of touch with the challenges of running a business. She is clueless about the real risks entrepreneurs face, such as personal financial exposure or meeting payroll demands. What’s worse is she doesn’t really care. Her primary concern is to deliver for her Trade Union bosses and their public sector requirements. The wealth creating sector is going to become a lot poorer under her.
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