UK (Parliament Politics Magazine) – UK PM Keir Starmer faces pressure to halt Angela Rayner’s workers’ rights bill, as business leaders warn reforms risk raising costs amid weak growth.
As reported by The Telegraph, business leaders warn Sir Keir Starmer against pushing former Deputy PM Angela Rayner’s employment rights reforms, describing them as a ‘political indulgence.’
What did Archie Norman say about Angela Rayner’s workers’ reforms?
Archie Norman, chairman of Marks & Spencer, said Sir Keir Starmer now has a ‘golden opportunity’ to scrap the legislation after Angela Rayner’s exit.
The remarks intensify pressure on the government to drop the bill to support growth and ease business strain.
According to former Tory MP Archie Norman, the reforms are a
“litmus test of where the Government’s priorities lie and a clear statement of intent to potential investors about the future of the UK.”
He stated,
“Now is not the time for a huge increase in labour market regulation. The labour market reforms are a political indulgence that the country cannot afford.”
Mr Norman added,
“The Prime Minister has a golden opportunity to show that things have changed: deferring the labour market reforms at least until when growth has been restored and the country can afford them.”
What did Sir Stuart Rose say about Britain’s growth crisis?
Sir Stuart Rose, head of EG Group, called the UK economy the worst he has experienced, warning there is “no sign of growth.”
He added,
“If the circumstances change, then actions need to change … We are facing the worst economic situation that I have seen in my working life. We are facing this crisis and it needs bloody dealing with. It needs somebody to stand up and shout ‘enough is enough.’”
What did Sir Tim Martin say about Labour’s workers’ reforms?
Sir Tim Martin, chairman of pub chain Wetherspoons, urged ministers to halt the legislation, warning pubs and restaurants are still struggling with higher bills since Chancellor Rachel Reeves’ tax raid last year.
He said,
“My advice to legislators would be to hold back on any initiatives, however well-meaning, which might put any extra pressure on businesses – don’t just do something.”
Mr Martin added,
“Hospitality will probably take several years to recover from the enormity of recent tax and National Insurance increases.”
What did Paul Nowak say about government promises and workers’ rights?
Union leaders warned Number 10 of a “massive backlash” if ministers move to weaken workers’ rights after the recent cabinet reshuffle.
Paul Nowak, head of the TUC, issued a sharp warning, saying,
“My message to the government is simply this: deliver the manifesto on which you won a huge majority last July; deliver good jobs, decent public services and better living standards in every corner of the country; deliver the change people voted for and show working people whose side you are on.”
What did Sharon Graham say about workers’ rights reforms?
Unite chief Sharon Graham, reportedly weighing support for Jeremy Corbyn’s new party, also issued a warning.
She said,
“What I do hope is that they don’t intend on now slowing this down, or indeed scrapping some parts of it altogether. You don’t have to be a bad employer to be prosperous. And so therefore, for me, trade unions are the equaliser.”
Ms Graham added,
“I don’t accept that trade unions and putting up wages is bad for the economy. It’s good for the economy.”
What did Labour MPs say about the Employment Rights Bill?
Labour MPs pressed ministers and peers to pass the bill intact.
Kate Osborne, the Labour MP for Jarrow and Gateshead East, stated,
“The Employment Rights Bill cannot be watered down, it’s a manifesto commitment that must be delivered in full, which includes overturning all of the recent unhelpful amendments that big businesses pushed through the Lords. It would be a disgrace if it was watered down by even one drop.”
Ian Byrne, Labour MP for Liverpool West Derby, said,
“It cannot be watered down… It would be a betrayal of all those who trusted us last year to deliver this key manifesto pledge, the very policy we stood on as Labour MPs.”
Jon Trickett, Labour MP for Normanton and Hemsworth, added,
“Clear commitments have been made about the Employment Rights Bill by the PM. There must be no question of betrayal, prevarication or compromise.”
What did the government say about the workers’ rights bill?
A government spokesman stated,
“We are a pro-worker and pro-business government and that is why we are delivering the biggest single upgrade of workers’ rights in a generation – because we know a more secure workforce is good for productivity and growth.”
They added,
“We have collaborated directly with over 230 stakeholders, listening carefully to feedback from businesses and trade unions to ensure that the legislation works for workers and employers alike and will continue to do so as the Bill progresses through Parliament.”
When will the Employment Rights Bill return to the Commons?
The Employment Rights Bill will return to the Commons next Monday, ahead of plans to bring legislation later this year.
Ministers have described the measures as the most significant overhaul of workers’ rights in decades, including protection from unfair dismissal from day one and the right to secure regular working hours.
Key facts about the Employment Rights Bill
The bill grants unfair dismissal protection from the first day of employment, though a lighter process may apply in the initial months. It also curbs “fire and rehire,” making such dismissals automatically unfair except in rare financial crises.
Many measures will not take immediate effect after royal assent in autumn 2025. Instead, the reforms will be phased in, with major changes due by 2027.