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Senior business leaders have welcomed discussions with Angela Rayner over proposals to improve workers’ rights as “positive”, but warned the “devil will be in the detail” of legislation due to be put before Parliament next month.

The deputy prime minister and business secretary, Jonathan Reynolds, met the bosses of major employers including John Lewis, Octopus, BT, McDonald’s and Sainsbury’s in Whitehall on Tuesday, at the start of a consultation over the new government’s plans.

Labour’s manifesto promised to overhaul employment rights, with measures including the right for all “zero hours” workers to be offered a contract in line with their normal hours, and the extension of full employment rights to all workers from day one.

The meeting comes amid concern among employers and business groups that a reduction in flexibility as employers could increase costs and hamper their ability to drive growth.

Several businesses present told Sky News the atmosphere was constructive and friendly, with the emphasis on Ms Rayner and Mr Reynolds explaining what they have planned, and listening to the concerns of employers.

Business leaders are understood to be concerned over how the phasing out of zero-hours contracts will be achieved. It’s a key issue in the hospitality and retail sectors which employ large numbers of younger and part-time workers.

Ministers have proposed that every worker must be offered a contract reflecting typical hours worked over a 12-week period, but there is concern that metric could lock employers into hours irrespective of seasonal fluctuations.

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Employers will argue for the hours to be calculated over a longer period to avoid distortions.

Businesses also argue that to extend the right from day one, they will need to impose longer probationary periods for new employees so they retain some flexibility.

Labour has promised to introduce legislation during its first 100 days in office, which gives them until 20 October, but are expected to continue consulting on measures beyond that date.

Ms Rayner and Mr Reynolds are understood not to have offered any specific timetable for changes they have billed as the biggest overhaul in a generation, but business leaders remain encouraged.

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One said: “None of what Labour is proposing comes as a surprise and we respect that they have a mandate, but the practical delivery will be complex and we can help with it.

“The feeling is this was a positive sign that the government understands the need to consult with business on the things that affect us. The devil will be in the detail, but this was a good first step.”

Another described the atmosphere as friendly and said it was clear the ministers want to be seen to be working with rather than against business.

Ahead of the meeting, Ms Rayner said: “This government is pro-worker and pro-business, and we are committed to working with our brilliant businesses across the country to create a stronger, growing economy and to raise living standards as a result.”

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US lawmakers tap Saylor, Lee to advance Bitcoin reserve bill

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US lawmakers tap Saylor, Lee to advance Bitcoin reserve bill

US lawmakers tap Saylor, Lee to advance Bitcoin reserve bill

Strategy’s Michael Saylor and BitMine’s Tom Lee are among 18 industry leaders who will look at ways to pass the BITCOIN Act and enable budget-neutral ways to buy Bitcoin.

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Super PAC backing ‘pro-crypto candidates‘ raises $100M

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Super PAC backing ‘pro-crypto candidates‘ raises 0M

Super PAC backing ‘pro-crypto candidates‘ raises 0M

The Fellowship PAC, launched in August, said it had “over $100 million” from unnamed sources to support the White House’s digital asset strategy.

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Starmer was aware of the risks of appointing the ‘Prince of Darkness’ as his man in Washington – to an extent

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Starmer was aware of the risks of appointing the 'Prince of Darkness' as his man in Washington - to an extent

It was a prescient and – as it turned out – incredibly optimistic sign off from Peter Mandelson after eight years as Chancellor of Manchester Metropolitan University.

“I hope I survive in my next job for at least half that period”, the Financial Times reported him as saying – with a smile.

As something of a serial sackee from government posts, we know Sir Keir Starmer was, to an extent, aware of the risks of appointing the ‘Prince of Darkness’ as his man in Washington.

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But in his first interview since he gave the ambassador his marching orders, the prime minister said if he had “known then what I know now” then he would not have given him the job.

For many Labour MPs, this will do little to answer questions about the slips in political judgement that led Downing Street down this disastrous alleyway.

Like the rest of the world, Sir Keir Starmer did know of Lord Mandelson’s friendship with the paedophile Jeffrey Epstein when he sent him to Washington.

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The business secretary spelt out the reasoning for that over the weekend saying that the government judged it “worth the risk”.

Keir Starmer welcomes Nato Secretary General Mark Rutte to Downing Street.
Pic: PA
Image:
Keir Starmer welcomes Nato Secretary General Mark Rutte to Downing Street.
Pic: PA

This is somewhat problematic.

As you now have a government which – after being elected on the promise to restore high standards – appears to be admitting that previous indiscretions can be overlooked if the cause is important enough.

Package that up with other scandals that have resulted in departures – Louise Haigh, Tulip Siddiq, Angela Rayner – and you start to get a stink that becomes hard to shift.

But more than that, the events of the last week again demonstrate an apparent lack of ability in government to see round corners and deal with crises before they start knocking lumps out of the Prime Minister.

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‘Had I known then, what I know now, I’d have never appointed him’ Starmer said.

Remember, for many the cardinal sin here was not necessarily the original appointment of Mandelson (while eyebrows were raised at the time, there was nowhere near the scale of outrage we’ve had in the last week with many career diplomats even agreeing the with logic of the choice) but the fact that Sir Keir walked into PMQs and gave the ambassador his full throated backing when it was becoming clear to many around Westminster that he simply wouldn’t be able to stay in post.

The explanation from Downing Street is essentially that a process was playing out, and you shouldn’t sack an ambassador based on a media enquiry alone.

But good process doesn’t always align with good politics.

Something this barrister-turned-politician may now be finding out the hard way.

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