UK Employment Rights Bill Faces Economic Warnings and Business Pushback

The OBR highlights potential negative impacts on growth and productivity, as business groups lobby for changes to Labour’s proposed reforms.

The Office for Budget Responsibility (OBR) warns that the Employment Rights Bill could have 'material and probably net negative' impacts on employment, prices, and productivity.
The OBR has not yet incorporated the bill into its forecasts, citing insufficient detail, but plans to include an estimate in its autumn forecast.
Business groups, including the Federation of Small Businesses, argue the bill could cost up to £5 billion annually and disproportionately burden small businesses.
The legislation, which includes bans on zero-hour contracts and restrictions on 'fire and rehire' practices, is under parliamentary debate and could face amendments.
Unions support the bill as essential for fair labor practices and economic equity, while critics warn it could undermine business flexibility and growth.