Labour will listen to bosses’ concerns on workers’ rights, says business secretary | Economics

Amid the board’s fears about jobs and growth, Business Secretary Peter Kyle has opened the door for bosses to influence Labor’s landmark changes to workers’ rights.

Kyle told business leaders at the CBI conference in London that he would hold 26 consultations with companies after the bill becomes law, in a sign that the government may consider watering down the overhaul of employment rights.

“Please deal with this when we start these consultations,” he said. “Speak up and contact me and my department to make sure we get it right.”

With Labor under pressure to restart the economy ahead of the autumn budget on Wednesday, Kyle pledged to ensure businesses “won’t lose out” as a result of the changes, which also include banning zero-hour contracts and giving workers day-one protection against unfair dismissal.

“I won’t let this be zero-sum, [you] Give one to the other, the other loses… This needs to be understood correctly.”

Business leaders have stepped up lobbying against changes to workers’ rights, saying employers will lay off workers as a result. The government’s own analysis estimates that implementing the changes could cost employers between £900 million and £5 billion.

Ministers are under pressure to implement the employment rights bill “in full” after Keir Starmer’s change in September fueled unrest among unions following the resignation of Angela Rayner, who championed the plan.

Union leaders and Labor MPs said reneging on the widely-supported manifesto promise would betray voters and undermine workplace protections for millions of people.

Conservative leader Kemi Badenoch told business leaders at the CBI that a shakeup of Labor poses a greater risk to businesses and the economy than the tax rises in Rachel Reeves’ budget on Wednesday.

He said: “This is a 330-page attack on flexible working, written at TUC headquarters, designed to drag Britain back into a world where unions call the shots.”

He said it would make little practical sense for Kyle, who has promised to repeal the changes from the Tory government, to reassure business leaders that he would listen to their concerns. “If all you need is 26 consultations to fix things, then you have a really big problem,” he added.

CBI chairman Rupert Soames said the bill would be “very damaging indeed” for firms.

Kyle told businesses they can rest assured of his presence in government. As science and technology secretary, Kyle was accused of being too close to big tech after Guardian analysis showed he had almost 70% more meetings with companies than his Conservative predecessor.

“It’s a criticism I welcome and one I expect to repeat in this job,” he said.

Kyle said Wednesday he agreed that ongoing speculation ahead of Reeves’ budget was weakening business confidence. Speaking to reporters on the sidelines of the CBI conference, he said: “I accept that some companies have said they are uncomfortable with speculation…

“I will listen and respect them and give them a say in the decisions we make in the future.”

He also acknowledged that some of Labour’s tax changes had led to wealthy individuals leaving the UK, telling Sky News on Monday: “I’m not going to run away from the fact that we’ve abolished taxes and closed some loopholes for non-doms.”

Labour’s employment rights bill, currently making its way through parliament, has been amended three times by Tory and Liberal Democrat colleagues in the Lords in a bid to meet significant job demands.

Labor has tried to reassure bosses by claiming it could use secondary legislation to amend the law once it is passed, but unions fear this could lead to a watering down of the law.

Kyle said he would “do whatever it takes” to remove the obstacles that parliament has placed on the bill due to amendments made in the House of Lords, and then consult on its implementation.

“The voice of business, the voice of people working in business, will be heard when we start to implement these important parts of the employment rights bill. And yes, I’m talking about zero-hours contracts and day one rights,” he said.