Don’t wreck jobs market revival with heavy-handed reforms, Rayner warned

Angela Rayner has been warned not to damage a revival in the jobs market with heavy-handed workers’ rights reforms, following a jump in hiring intent across London.

New figures from the Recruitment & Employment Confederation (REC) show a surprise increase in hiring plans across the capital, as well as an upswing nationally.

A survey of London employers found a net balance of 33.2pc planned to increase the size of their permanent staff in the next three months, compared with 18.4pc across the rest of the UK.

When measured over the next four to 12 months, the figures stood at 35.3pc in London and 15.3pc for the overall UK.

Kate Shoesmith, deputy chief of the REC, said the figures underlined the need for caution as the Government prepares for what has been billed as the biggest reform to workers’ rights in a generation.

Ms Shoesmith said: “There have been signs of a turn in the labour market in recent months, and so now we need this positivity to extend to businesses across the UK.

“The new Government must seize on this air of optimism with labour market reforms that help rather than hinder employers’ ability to attract and retain workers.”

Plans for a new Employment Rights Bill were confirmed in the King’s Speech as part of what has been dubbed a ‘New Deal’ for workers.

Deputy Prime Minister Angela Rayner, who is spearheading the ‘New Deal’, has said the Government will establish a new watchdog called the Fair Work Agency with “real teeth” to clamp down on employers that breach workers rights.

Other measures in the ‘New Deal’ include a ban on “exploitative” zero-hours contracts and an update to trade union legislation to make it “fit for a modern economy”.

The proposals have proved controversial among business leaders, with some voicing worries it could affect their ability to hire seasonal staff.  At the same time, some union chiefs have opposed Labour’s plans for a formal consultation with industry.

Ms Shoesmith said: “We urge government to work with us as they develop plans for a new Employment Rights Bill and on the proposed Industrial Strategy, so it is underway, sooner rather than later.”

The REC said its members were reporting demand for staff across a broad range of industries, including accounting, construction, engineering, nursing, catering and IT.

A spokesman for the Department of Business & Trade (DBT) said: “This government is committed to working in partnership with business, including consulting extensively on how the New Deal for working people can achieve positive change for businesses and workers alike.

“The Employment Rights Bill is key to delivering that, including a ban on exploitative zero hours contracts, more voice for people in their workplace and more money back in people’s pockets to boost growth.”

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