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LONDON DAILY ARCHIVE

Rayner’s Employment Bill Criticized as ‘Stealth Tax’

Institute of Economic Affairs warns workers will bear £5 billion cost

14 July 2025 · 05:30 UTC

A new report warns that Deputy Prime Minister Angela Rayner’s Employment Rights Bill could act as a £5 billion stealth tax, as businesses are expected to pass additional costs onto workers through slower wage growth.

The legislation, which includes expanded parental leave and holiday entitlements, is criticised for imposing mandates that effectively reduce take-home pay, while proponents argue it offers the most significant workers’ protections in a generation and will support low-paid and insecure employees.