UK Prime Minister Sir Keir Starmer has defended the government’s new proposals to overhaul and increase workers’ rights as “pro-growth”, arguing that providing greater security for workers will lead to better economic performance. Speaking at a major business summit in London, Starmer outlined the government’s Employment Rights Bill, which introduces significant changes, including sick pay from the first day of illness and the ability to claim unpaid parental leave as soon as one starts a new job. However, most of these reforms will not take effect until two years from now.
While the government’s focus is on balancing the interests of business and workers, some business leaders have expressed concerns about the practicality of these changes, fearing they might discourage hiring new staff. However, Starmer emphasized that the changes aim to support both workers and business by creating a stable environment for growth.
In addition to the workers’ rights reforms, the prime minister announced a £1.1 billion investment in Stansted Airport, which is expected to expand its terminal by one-third and create more than 5,000 jobs. He also pledged to remove unnecessary bureaucracy that hinders investment and growth, calling for an upgrade to the regulatory regime.
Former Google CEO Eric Schmidt highlighted the need for more efficient regulation, arguing that delays in decision-making were negatively impacting investment in the UK. Other business leaders, like David Ricks of Eli Lilly and Anders Opedal of Equinor, echoed concerns about stability and the importance of getting the execution of the government’s strategies right, especially in areas like tax policy.
The summit also addressed controversies surrounding Elon Musk, who was not invited, though Technology Secretary Peter Kyle emphasized that Musk would be welcome if he had an open investment programme in the UK.
Despite concerns from some quarters, the summit saw significant commitments to investment in the UK. Companies such as DP World and Macquarie are planning to pour billions into UK infrastructure, further bolstering the government’s pro-growth agenda. Chancellor Rachel Reeves is set to deliver a keynote speech at the event, underlining the government’s commitment to attracting international investment while balancing regulatory reforms.
