Peter Kyle: We will get rid of 25 per cent of regulation
Business secretary Peter Kyle said there were “absurdities” across regulatory bodies for businesses as he vowed to cut burdens by 25 per cent.
In a fringe event at the Labour party conference, Kyle struck a bold tone on the extent of red tape holding the UK economy back, adding that he was asked by Keir Starmer to double down on driving the government’s growth mission.
He said there would be risks ahead for the government in its deregulation but said an “overcaution by previous generations” and that the UK had an opportunity to seize on changes in the global economy.
“It’s a risk getting rid of stuff. But there is a second risk, and that is the risk of doing nothing,” Kyle said.
“Over time, the economy just gets weighted down. It just gets burdened.”
“There are some absurdities in regulation. We all hear about that reading in the papers, but it’s true.”
Peter Kyle quizzed on Employment Rights Bill
Despite his pledge to reduce the regulatory burden by 25 per cent and to make reforms without adding new legislation, Kyle also faced questions about the government’s Employment Rights Bill and “Make Work Pay” plans being introduced.
Labour’s new workers’ rights reforms will allow staff to sue bosses for unfair dismissal from day one of employment and hand greater powers to trade unions.
Business groups have warned Kyle new red tape will have a “chilling effect” on employment while the Office for Budget Responsibility (OBR) has said changes will have a “net negative” effect for growth, with more concise calculations on its impact expected to come in this year’s Budget.
Kyle told Labour members on Monday that he would see the Employment Rights Bill through in full.
On Tuesday, he explained that the addition of red tape was to protect the British workforce.
“The world of work changes. The world changes around us,” he said.
“The fact is, you have companies doing great creative pay products. The best thing is its workforce, doing anything you expected for its work.
“And then you have got another company that could be using zero hours contracts to avoid payment of wage overall. It’s exploited its workforce in a legal way, using the loopholes to the society, which is changing.
“Then that company will be the one that supplies in the market, not the one that is innovating, investing its workforce, investing in innovation. So we have to adapt.”
During the event, Kyle also defended his style of clothing against criticism he had tried to mimic tech entrepreneurs in his previous brief as technology secretary.
He said that he bought his first tie in his mid-30s, adding: “I was a tech bro before the tech bro.”