The Employment Rights Bill is considering amendments in the Lords today. Wonks at the free market Growth Commission have scored it using their “Anti-Competitive Market Distortions Model.” It’s not good news…
The think tank says “even the lowest potential impact suggested by the Commission’s modelling is a multiple of the £5 billion cost estimated by the Government.” It points out that the tight controls in the bill will bring the UK into line with sluggish Euro economies:
“Spain, the country whose labour laws will be most similar to those in the UK if the Bill is implemented, currently has an unemployment rate of 10.45%, more than double the UK’s 4.8%.”
The result is that within ten years GDP per capita will be lower by anywhere from 1.4% to 2.8%. That is £38 billion to £76 billion, £554 to £1,108 per person. Shadow Business and Trade Secretary Andrew Griffith, who has been leading the charge against the bill, said: “This report is just another from a series of business groups and think tanks all saying this Bill will damage rather than help the economy… Every Labour government leaves unemployment higher but this one is going out of its way to ensure that.” True…
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