James Wild MP has pressed the government to explain how its claims of decreasing regulation can be reconciled with the £5 billion a year in new costs being imposed through the Employment Relations Bill.
During questions to the Business Secretary in the House of Commons, James highlighted the contradiction between the government’s rhetoric on deregulation and the reality facing employers. Ministers cited the abolition of the British Hallmarking Council which employs one part time employee as an example of their “blitz on business bureaucracy.”
Speaking in the House of Commons, James Wild MP said:
"To show his deregulatory zeal, the Business Secretary just boasted about scrapping the British Hallmarking Council, which has one part-time employee. Given that every £1 of regulatory costs has the same impact on investment as £1 taken in tax, why are the Government proceeding with their unemployment Bill and proposing a £5 billion a year tax on British businesses?"
In response, the Business Secretary said:
"It is quite extraordinary; after just a couple of weeks in the job, I have announced £230 million of deregulation every year - £1 billion-worth between now and the next general election - and what do the Conservatives do? They say that we are not going far enough. They had 14 years; I have had a couple of weeks! It is about time they started coming up with better questions, and stopped criticising a Government who act where they failed to."
Research from business groups suggests these pressures are already impacting employers' planning, with the Regulatory Policy Committee warning that the government's £5 billion estimate for Employment Rights Bill costs could be "way off the mark," and leading hospitality and retail organisations warning they have "absolutely no more capacity to absorb additional costs."
