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Labour's Employment Rights Bill Could Cost Businesses £5 Billion Annually

Oct 21, 2024, 12:40 PM

The UK government's recent assessment of the Employment Rights Bill, currently debated in Parliament, reveals significant financial implications for businesses. The bill, aimed at revamping employment rights, is projected to cost businesses up to £5 billion annually. Small businesses are expected to be hit hardest, potentially reducing their willingness to hire new workers. Despite the high costs, the bill could result in a £5.5 billion annual wage increase for social workers and provide a £600 savings boost for workers. Labour's Reeves and Rayner's plans have been criticized for potentially harming job creation and economic growth, with some suggesting it is anti-growth and detrimental to business confidence.