UK (Parliament Politics Magazine) – UK PM Sir Keir Starmer faces pressure from unions to uphold Labour’s workers’ rights bill after Angela Rayner’s exit as Deputy PM amid business pushback.
As reported by The Independent, Keir Starmer faced calls to maintain Labour’s workers’ rights bill following Angela Rayner’s resignation over tax matters.
How are unions and businesses influencing Keir Starmer on workers’ rights?
During the Brighton TUC conference, unions called on Sir Keir Starmer to protect workers’ rights amid business calls to modify measures.
The trade group UKHospitality, which represents pubs, bars, and restaurants, will write to all ministers seeking changes to the workers’ rights package, including reducing day-one unfair dismissal protections.
Angela Rayner’s resignation raises concerns that the employment rights legislation may now be at risk.
What did TUC’s Paul Nowak say about the UK workers’ rights bill?
Speaking at the TUC conference, General Secretary Paul Nowak pledged to “fight every inch of the way” to ensure the workers’ rights bill delivers on its promises.
Before the TUC conference began in Brighton, he stated,
“The government must, and should, deliver on the promises it gave to the British people last July. The bill will level the playing field – extending the standards already set by the best employers, working with unions, to millions more. It will stop good businesses being undercut by the cowboys and it will help build a modern economy that raises pay, boosts productivity and improves well-being.”
Mr Nowak said,
“Tory and Lib Dem peers are desperately trying to water this bill down. My message to these blockers is simple: get out of the way. You’re lucky enough not to face financial disaster if you take a day off sick. You’re lucky enough not to have to face abusive customers.”
He stated,
“You’re lucky enough not to worry about paying the bills if your boss cuts your shift with no notice. Millions of workers aren’t that lucky, and working people have waited long enough for change. The employment rights bill is a vital first step in tipping the balance back toward workers.”
Mr Nowak added,
“So today, my message to all parliamentarians is simple: do the right thing. Listen to the public, stand with working people, deliver the bill in full.”
What did Sharon Graham say about the government and workers’ rights reforms?
The head of Unite, Sharon Graham, called on the government to enact full reforms of workers’ rights to honour its commitment.
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 Kate Nicholls say about the workers’ rights bill?
Business leaders view the situation as an opportunity to secure concessions on the bill.
UKHospitality chairman Kate Nicholls stated,
“Now is the time to press pause and review these measures, and to take pragmatic steps so the bill is proportionate and balanced and does not cause costs to business and jobs.”
The British Retail Consortium and the Federation of Small Businesses are also urging ministers to scale back the Employment Rights Bill.
How did Angela Rayner’s departure affect Labour’s workers’ rights package?
Junior minister Justin Madders, who helped design Labour’s workers’ rights plan, was sacked in Sir Keir Starmer’s cabinet reshuffle.
Ms Angela and Mr Madders have been the main proponents of the workers’ rights package within the government.
Before the election, Chancellor Rachel Reeves faced claims of opposing the full workers’ rights package, with firms expecting it to be watered down. Reports suggest she opposed the employment rights package.
Former employment rights minister Justin Madders addressed fears the bill could be weakened, saying,
“Let’s hope these fears are unfounded because it would be really, really foolish for the Government to row back on key manifesto commitments that are popular with the public and will show what a positive difference a Labour government can make.”
What did Kemi Badenoch say about Angela Rayner’s employment rights bill?
Kemi Badenoch, leader of the Conservatives, called the moment a chance to drop the bill her party had opposed.
She said,
“Angela Rayner’s job-destroying bill is hated by every credible business figure in the country and will cost firms over £5bn according to the government’s own analysis.”
Ms Badenoch added,
“With his deputy gone, Starmer must now focus on the dire economic situation. If he’s serious about delivering economic growth, his latest reset must start with the end of this disastrous bill. It’s the one request from every business I’ve spoken to, especially small business owners.”
What led to Angela Rayner’s resignation over underpaid stamp duty and tax issues?
Angela Rayner admitted underpayment of stamp duty on her £800,000 coastal property after scrutiny over her finances.
She has self-referred to the PM’s ethics adviser after admitting she paid the lower property tax rate on her Hove flat, potentially owing £40,000 more.
In a statement, Ms Rayner added,
“I deeply regret the error that has been made. I am committed to resolving this matter fully and providing the transparency that public service demands. It is for that reason I have today referred myself to the independent adviser on ministerial standards, and will provide him with my fullest cooperation and access to all the information he requires.”
Key details about Keir Starmer’s cabinet reshuffle
David Lammy was appointed Deputy Prime Minister, taking over from Angela Rayner, while Yvette Cooper became Home Secretary, focusing on immigration, crime, and security.
Other appointments include Shabana Mahmood as Justice Secretary. The cabinet emphasises broader representation and progressive policy approaches.
UK Employment Rights Bill
The new employment rules give workers protection from being unfairly fired on their first day. There will be a probation period of up to nine months with simpler dismissal rules.
‘Fire and rehire’ practices will be limited, except in serious business problems. The time to make claims at employment tribunals will increase from three to six months starting in October 2026.