Kemi Badenoch tells Keir Starmer to stop Angela Rayner's £5bn bombshell killing growth

The Prime Minister should grasp the opportunity created by Angela Rayner’s resignation to scrap a workers’ rights revolution which threatens to hit businesses more than £5billion, according to Conservative leader Kemi Badenoch.

The Tories say the former Deputy Prime Minister was at the heart of a trade union-backed “war on the private sector”. They say Labour has received £35million in union donations since Sir Keir Starmer became leader.

Keeping the plans in place would “irresponsible and dangerous”, the Conservatives warn.

Mrs Badenoch said: “Angela Rayner’s job-destroying Bill is hated by every credible business figure in the country and will cost firms over £5billion, according to the Government’s own analysis.

“With his deputy now out of government, the Prime Minister needs to focus on the dire economic situation. If Starmer is serious about delivering economic growth, this latest reset must start with the end of this disastrous Bill. It’s the one request from every business I’ve spoken to, especially small business owners.”

Shadow Business and Trade Secretary Andrew Griffith branded Ms Rayner’s package of measures an “Unemployment Bill”, saying it would lead to more joblessness, lower wages and more strikes.

He said: “With Keir Starmer’s government in chaos, and the country facing an economic crisis of Labour’s making, it is high time the Prime Minister did the right thing and scrapped this disastrous Bill, before it is too late.”

Callum Price of the Institute of Economic Affairs said: “Mounting yet more obligations and red tape on businesses at the same time as raising the cost of labour through minimum wage and employment tax hikes is antithetical to growth. The Government should take this chance to consider changing course.

“That would be the pro-growth, and pro-working people move.”

John Longworth of the Independent Business Network said: “Angela Rayner was clearly the darling of the trade union bosses. Her draconian union rights legislation was a war on enterprise, growth and wealth creation and should be consigned to the bin of history along with its chief protagonist.

“If Labour is to stand any chance of achieving the all important growth agenda , this is the opportunity for its revival.”

But a Labour spokesperson said: “We are not scrapping this landmark legislation, opposed by the Tories and Reform, that will boost people’s rights at work by ending exploitative zero hours contracts and fire and rehire, ensuring fair pay and improving parental leave.”

Accusing the Tories of having “completely failed business when they were in power,” the spokesperson added: Their economy-crashing approach to governing left many businesses struggling and saw jobs put at risk. With Labour, business confidence is at a nine-year high and we’re working in partnership with businesses and workers to grow our economy and create more well paid British jobs.”