Reeves: New Deal consultation will prevent ‘adverse consequences’

Rachel Reeves has declared businesses have “nothing to fear” from Labour’s plans to strengthen workers’ rights but said the party will consult on how to implement its proposals to ensure there are no “unforeseen, adverse consequences”.

In a question-and-answer session with journalists following a speech in the City of London this morning, the Shadow Chancellor stressed that Labour is “absolutely committed” to delivering its flagship New Deal for Working People “in full”, which she described as an “important part of our economic offer”.

Reeves’ comments follow a recent report in The Financial Times that Labour was set to “unveil a weakened package” in the coming weeks – a claim that a party spokesperson pushed back on last week.

The party has faced pressure from business chiefs to row back on its wide-ranging proposals, but they have significant support from trade unions and many members.

Reeves said this morning: “Businesses have got nothing to fear from Labour’s New Deal for Working People. And of course, we will consult on how to implement these things so that there aren’t any unforeseen, adverse consequences from it.

“But we’re committed to the New Deal for Working People. It’s an important part of our economic offer, both to build a stronger and more resilient economy and to ensure that working people benefit from a growing economy.”

Pressed on the timeline for legislating, Reeves told attendees: “We will bring forward legislation in the first 100 days of a Labour government. Of course, we would then consult on that, both within those 100 days and afterwards as it goes through the normal parliamentary process.”

Reeves said the package of measures set out by the party is not only the “right and the fair thing to do, but it’s also good for the economy”.

“There’s now mounting evidence that shows that more secure work results in both more motivated workforce but also workers who are more willing to move jobs because they can be guaranteed security in work,” she said.

She claimed that “many, many businesses” already “go well beyond” the measures set out in the New Deal by not using zero-hour contracts or fire and rehire and giving “better rights” around sick pay.

“But businesses who do use these methods, then there will be a level playing field, to ensure that businesses can’t undercut each other by using zero-hour contracts, for example, or through fire and rehire,” she added.

The Shadow Chancellor said she and Labour colleagues “have spent a lot of time talking to businesses about how this will work for them”, adding: “For example, on zero-hour contracts, after 12 weeks if you’ve been working regular hours, you’ll be able to get that permanent contract.

“But if you want that flexibility as a worker, you can remain on the contract you’re on. It’s just about saying that the flexibility can’t be all one way. And there’ll be nothing in Labour legislation that would stop employers from using overtime, for example, or taking workers on on a seasonal basis.”

Read our coverage of the 2024 local elections here.

If you have anything to share that we should be looking into or publishing about this or any other topic involving Labour, on record or strictly anonymously, contact us at mail@labourlist.org. 

Sign up to LabourList’s morning email for a briefing everything Labour, every weekday morning. 

If you can help sustain our work too through a monthly donation, become one of our supporters here.

And if you or your organisation might be interested in partnering with us on sponsored events or content, email mail@labourlist.org.