Labour’s vow to tie UK in more employment red tape with new deal will be £205bn blow for businesses, warns Tories

LABOUR’S promise to tie Britain in more employment red tape will be a £205billion blow for businesses, the Tories warn today.

They say its plan for sweeping reforms to workers’ rights risks turning the UK into a “French-style” economy, with firms having to find an extra £1,250 per staff member.

The so-called New Deal for Workers is championed by Labour deputy leader Angela Rayner, who was electioneering in Wales yesterday.

It includes a massive watering down of laws to protect against strikes — to the delight of Labour’s union backers.

The package, written with Labour’s trade union brothers, would see statutory sick pay handed to all workers, the ramping up of homeworking, a ban on zero-hours contracts as well as extending statutory maternity and paternity pay.

The Equalities Act would also be strengthened to tie up firms with rules on hiring.

But along with hikes in the minimum wage, Tory costings put the annual bill for bosses at £41billion — meaning £205billion over the course of a five-year parliament.

They warn a firm the size of Tesco with more than 300,000 staff will take a £375million annual hit, risking price rises at the tills.

Tory Chairman Richard Holden said: “Angela Rayner, backed by Sir Keir Starmer, is poised to ram through this new bombshell that will cripple small business and opportunities in order to appease their union paymasters if Labour win the election.

“Labour’s 70 new French-style union laws will cripple British businesses and, as ever, leave the public to pick up the bill.”

Tories also point to warnings from bosses about the impact the reforms would have on hiring.

The chairman of M&S said they could reduce flexibility for workers and “make it more costly to hire”.

And the chief executive of Currys said they could backfire and end up not only making people poorer, but “businesses more hesitant to hire in the first place”.

Sir Keir has walked a tightrope over the package, trying not to upset unions or big business.

Last night, Labour called the costings a “dodgy dossier” insisting: “This is absolute nonsense. The Conservatives have once again costed a policy that isn’t Labour’s.

“It’s time to stop the Tory chaos, turn the page, and start to rebuild with this changed Labour Party.”

STARMER GRILLED

The election spat came as Sir Keir was forced to defend junking a series of his previous pledges.

He visited Scotland yesterday, where he said winning back seats from the scandal-hit SNP was ­crucial to his chances of clinching a majority.

But Sir Keir was put on the ropes in several media grillings over his record of flip-flopping on past vows.

The Labour boss blamed economic “reality” for his host of U-turns, but was branded a “spineless human jellyfish” by senior Conservatives.

Many of the promises he made in the 2020 leadership campaign are now dead, while even recent positions such as the £28billion green spending spree were abandoned.

And on Thursday night his shadow education chief Bridget Phillipson even touted hiking university tuition fees after Sir Keir previously vowed to abolish them altogether.

She said it was “unpalatable”, but could not rule out lifting the current £9,250 cap.

Sir Keir is nothing but a human jellyfish — completely spineless and will drift along wherever the tide takes him

Conservative deputy chair Jonathan Gullis

Justifying the flip-flop, Sir Keir said yesterday: “Looking at costing for tuition fees or abolishing them and looking at the money we need to put in the NHS, I’ve taken the decision we can’t do both.

“I decided we’ve got to prioritise getting those waiting lists down. I’d rather make the choice now this side of election than say something now which I know in my heart of hearts is not deliverable the other side of the election.”

He also came under pressure over the two-child benefit cap, which he also promised to scrap when running for leader.

Pressed on whether he could resurrect his vow, he said: “In an ideal world. But we haven’t got the resources to do it at the moment.

“What I will do, because child poverty is something I am absolutely set against, is the last Labour government had an anti-child poverty strategy and we managed to do a huge amount of good stuff on child poverty.”

Last night Conservative deputy chair Jonathan Gullis said: “Sir Keir is nothing but a human jellyfish — completely spineless and will drift along wherever the tide takes him.

"You cannot trust him to stand by a word he says.

“Labour have no plan and always take the easy way out, while the Conservatives have a clear plan, and will take bold actions to deliver a secure future.”

Meanwhile, the PM was on the election trail in Belfast yesterday, as Lib Dem leader Sir Ed Davey visited Eastbourne, East Sussex.

Shadow Chancellor Rachel Reeves was expected to make her first speech of the campaign today, focusing on the cost-of-living crisis.