Labour's workers' rights Bill could cost NHS, police and fire service £1bn a year and 'wreak havoc' on public sector, Tories warn
Labour's workers' rights reforms would 'wreak havoc' on the public sector and cost the NHS, police and fire service £1 billion a year, the Government has been warned.
Angela Rayner's Employment Rights Bill will make it £154 more expensive to employ every single worker, according to analysis by the Conservatives.
With a fifth of all workers employed in the public sector, this means the £1 billion tab will have to be picked up by the taxpayer - with the Tories warning yet more tax hikes might be needed to fund it.
The Government's own impact assessment estimates the Bill could cost businesses £5 billion a year, with £999 million from the taxpayer funding the 6.12 million people employed in the public sector, the Tory analysis found.
The NHS - which employs about 1.5 million staff - is potentially facing additional costs of up to £244 million due to the additional employment costs associated with Labour's Bill.
Shadow business secretary Andrew Griffith called on Labour to 'listen to the chorus of voices from across industry calling for compromise', as he warned that if the Bill becomes law it will 'wreak havoc' on public services.
He told the Mail: 'We already know Labour's 'Unemployment Bill' will do untold damage to businesses. But it will also heap immense pressure on struggling public services.
'By making it more expensive to hire staff and giving the green light to strikes, the Bill will force taxpayers to pay more for worse services.'
The Employment Rights Bill, which was supported by former Deputy PM Angela Rayner, will make it £154 more expensive to employ every single worker, according to analysis by the Conservatives
Shadow business secretary Andrew Griffith (pictured) called on Labour to 'listen to the chorus of voices from across industry calling for compromise', as he warned that if the Bill becomes law it will 'wreak havoc' on public services
It comes as MPs last night rejected Lords amendments - proposed as a 'compromise' by peers - on zero-hours contracts, seasonal work and controversial unfair dismissal claims from day one.
The day-one dismissal amendment would have pushed back Labour's plans to allow workers to take their employers to tribunal for unfair dismissal from the first day in a new job.
Peers had proposed six months, rather than the present two years, due to fears from business groups.
Last night Sir Keir Starmer was urged to accept the six-month proposal by former prime minister Sir Tony Blair's think-tank, which warned the proposal could damage growth.
In a new report, the Tony Blair Institute for Global Change said: 'This would raise employment costs by increasing the legal and procedural risks attached to every new hire and discourage firms from recruiting.'
However, Labour MPs last night voted down the amendment after former deputy prime minister Ms Rayner - who has championed the Bill - told the Commons that the workers' rights reforms are 'unfinished business' for her.
'Tonight, this House will once again send the message that we will not back down,' she said. 'This Bill is a promise we made to the British public, it is our duty to deliver it.
'I say to my colleagues on the front bench that I will be with you every step of the way as we do just that.'
The Bill will now return to the Lords after MPs rejected peers' amendments, meaning it must undergo another round of parliamentary 'ping pong' if the legislation is to get on the statute book.
A Government spokesman said: 'We don't recognise these figures. Our Bill will end the days of low pay and falling standards, and drive economic growth by boosting the working conditions and living standards of over 15 million workers.
'Most employers recognise that happy workers are more productive and we will continue to work with them to deliver the growth that this country needs.'
