Angela Rayner’s workers overhaul could cost jobs, claim store bosses (2025)

Jeremy Vine slams Angela Rayner over cost increases

Angela Rayner’s sweeping overhaul to workers’ rights will saddle British firms with red tape, force job cuts and push up prices, business leaders have warned.

The Deputy Prime Minister is facing a backlash over her flagship employment reforms, which are currently going through the House of Lords.

Angela Rayner argues the change in the law will deliver a “New Deal for Working People”.

However, retail bosses are warning of a “deeply worrying” impact on high streets already buckling under soaring costs and tax hikes.

A poll by the British Retail Consortium (BRC) found more than half of HR directors plan to cut jobs or raise prices as a result of the changes.

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The Deputy Prime Minister is facing a backlash over her flagship employment reforms (Image: Getty)

Planned changes to dismissal and strike rules are among employers’ top concerns. At the same time, it is claimed that a proposed right to guaranteed working hours will make it harder to offer part-time and flexible roles that are the lifeblood of many retail businesses.

The BRC revealed that 70% of retail hiring chiefs believe the legislation will have a “negative or very negative impact” on their businesses.

Helen Dickinson, chief executive of the BRC, said: "Almost 250,000 jobs have been lost in retail over the last five years, and many major retailers have already announced further job cuts on the back of increased costs of employment which kicked in in April.

"Those in charge of retail hiring are clear – unless amended the Bill will make it even harder to keep and create jobs and reduce the flexibility that defines many existing retail roles. This matters: local, flexible retail jobs are an important stepping stone for those entering or returning to the workforce.

“Retailers agree with Government on the need to crack down on unscrupulous employers, but in its current form the Employment Rights Bill could backfire, putting the brakes on hiring, or worse still, putting retail job numbers further into reverse.

“The Government wants growth and wants to reform welfare and increase the numbers in work. We are aligned on the objectives.

"Now it's about making sure the implementation of policies help not hinder retailers ability to provide the very jobs the economy needs."

The storm clouds come on top of fresh downgrades to Britain’s economic outlook. The International Monetary Fund recently cut its forecasts amid rising taxes and global trade tensions, and was swiftly followed by the EY Item Club, which said Chancellor Rachel Reeves may need to “rethink” her economic strategy this autumn.

Business groups say that rather than easing the burden, Labour’s policies – including Rayner’s employment reforms – risk piling on more pressure.

Firms are already reeling from a £25billion National Insurance raid and a sharp minimum wage increase, both of which came into force this month.

Now, Angela Rayner’s push to shake up employment rights is set to unleash what critics call a “new deluge of red tape”, just as Labour insists it is cutting back on unnecessary regulation.

Angela Rayner defended the Bill, saying: "For too long millions of workers have been forced to face insecure, low paid and irregular work, while our economy is blighted by low growth and low productivity.

"We are turning the tide – with the biggest upgrade to workers’ rights in a generation, boosting living standards and bringing with it an upgrade to our growth prospects and the reforms our economy so desperately needs.

"We have been working closely with businesses and workers to progress this landmark bill and deliver our Plan for Change - unleashing growth and making work pay for everyone."