LABOUR’S pro-union curbs on business have now even been attacked by a left-wing think tank that warns it will choke off growth.
The Employment Rights Bill already faced intense criticism from bosses due to the pressures it will place upon them.
Laws will see bosses forced to give workers a series of protections and benefits on “day one” of their jobs rather than the typical probationary period.
Now the Resolution Foundation – often described as Labour’s favourite think tank – has joined the backlash to the legislation.
It warned the package would “inhibit hiring” while offering “little obvious gain to workers”, according to the Sunday Telegraph.
The intervention will pile pressure on Sir Keir Starmer to ditch the laws that were championed by Angela Rayner before she was forced to quit.
Shadow Chancellor Mel Stride said: “When even the Resolution Foundation – Labour’s favourite think tank – warns that their flagship Employment Rights Bill will destroy opportunities for young people, you know this is a serious mistake.”
Labour’s union paymasters have warned the PM not to weaken the package in any form whatsoever.
They are at odds with businesses who have raised the alarm over the damage it will do to private sector growth.
Even the government’s own impact assessment said the measures would cost firms £5billion.
The Sun previously revealed Cabinet Ministers were privately lobbying No10 to weaken the package amid fears it would hamstring the economy.
Today Health Secretary Wes Streeting insisted Rachel Reeves was committed to driving growth in her November 26 Budget.
The Chancellor is widely expected to raise taxes after the economy failed to pick up, and spending continued to balloon.
Ex-Bank of England government Melvyn King said: “She should start the budget with a very clear and honest statement about the state of the nation, state of the economy.”
“Don’t blame people for what’s happened in the past. It may get cheers on the floor of the House of Commons, but what people want to hear is what is the actual state of the nation.”