Job losses threat over 'Get Britain Working Again' plan

Starmer puts hopes in company bosses to employ 2 million

- DAVID MADDOX & ALBERT TOTH

Sir Keir Starmer is in a new row with leading company bosses as his government attempts to force around 2 million young people back into work.

As work and pensions secretary Liz Kendall unveiled the “Get Britain Working” plan in the Commons, a major business organisation – the British Chambers of Commerce – warned that Labour’s policies are more likely to lead to job losses.

There was similar criticism from the Confederation of British Industry (CBI), with both organisations pointing to the impact of employment rights legislation and the rise in national insurance dubbed “the jobs tax”.

The government plans to force young people and the long-term sick to take up work or lose their benefits in a dramatic move to end worklessness and increase employment in the UK.

But Matthew Percival, work and skills director at the CBI, said: “Employers have a key role to play in supporting the delivery of the government’s objectives. There’s no doubt that rising taxes and employment costs will make it more difficult for them to do so.”

With the employment rights bill discussed by MPs in committee stage on the same day, the issues were linked by Shevaun Haviland, director general of the British Chambers of Commerce.

He said: “The Budget has already left many firms feeling bruised, and if this legislation is enacted as it stands, it could hamper growth, restrict recruitment and lead to job losses.”