Boss of Gail's Bakery expresses concerns over Employment Rights Bill potential impact on employment numbers
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The UK job market could be in danger due to Labour's plans to tighten up rules for businesses hiring staff, warns a top business magnate, Luke Johnson.
Gail's Bakery chair, Johnson, highlights the country's shaky fiscal health, stating that adding more regulations for companies, especially small ones, will deter them from employing new staff as expenses increase. He pointedly comments, "If you doll up growth talk but offer the opposite in action, the Employment Rights Bill will surely snuff out jobs."
Speaking with James Reed on his All About Business podcast, Johnson doubles down, advocating the complete scrapping of the bill, considering the precarious state of the UK economy.
The concern comes at a time when businesses are grappling with a slew of additional costs following measures implemented by Chancellor Rachel Reeves, including:
- A 6.7 percent hike in the National Living Wage to £12.21 per hour.
- An increase in National Insurance Contributions from employers.
Johnson, who previously served as the head honcho at Pizza Express and currently sits on the boards of companies such as The Revel Collective, the owner of Revolution Bars, expresses worry that soaring costs could drive entrepreneurs away from the UK.
Johnson remarks, "Fewer people will be enticed to start businesses; they'll opt for outsourcing, automation, or simply quit. If you place excessive burdens and taxes on those risk-takers, it's only a matter of time before the talent drifts off."
Job Prospects and Small Businesses: Perspectives and Concerns
Luke Johnson's stance highlights ongoing discussions surrounding the potential impact of increased employment laws on small businesses and job creation. While the aim of enhancing workers' rights is commendable, the implementation could impose additional administrative and financial burdens on employers, potentially deterring them from expanding or hiring new staff.
To fully comprehend the consequences, it's crucial to analyze the detailed provisions of the Employment Rights Bill and examine how they could affect small business operations, hiring practices, and overall job creation prospects.
- In the discussion about employment laws, worries have emerged regarding their potential impact on small businesses and job creation, as highlighted by Luke Johnson, the chair of Gail's Bakery.
- Johnson, who also serves on Boards such as The Revel Collective, owner of Revolution Bars, voiced concern over increased costs due to regulations and taxes, fearing they might drive entrepreneurs away from the UK.
- The Employment Rights Bill, with its potential increase in administrative and financial burdens for employers, could discourage them from expanding or hiring new staff, according to Johnson, making him advocate for its scrapping.
- Luke Johnson also criticized the bill in light of the precarious state of the UK economy, suggesting that it could force businesses to resort to outsourcing, automation, or even business closure.
- Amid growing concerns about the UK job market and small businesses, the broader industry, including finance and business sectors, has been paying keen attention to the implications of the Employment Rights Bill on 5 billion pounds worth of investments in the UK, potentially posing a threat to the overall economic development.
