Overview

• The Employment Rights Bill has reached its report stage in the House of Commons after peers in the Lords scrutinised amendments.
• The Institute of Economic Affairs warns the measures could impose £5 billion in extra annual costs on businesses, effectively acting as a stealth tax on employees.
• The government’s impact assessment concurs on £5 billion higher costs for employers, which the IEA predicts will be passed to workers through smaller pay rises.
• The Office for Budget Responsibility cautions that the proposed changes will probably have net negative effects on employment, prices and productivity.
• Labour officials defend the legislation as vital for upgrading worker rights and economic growth, while Conservatives pledge to repeal it if elected.