Last week, Rachel Reeves angered business leaders not only by saying: An increase of £25 billion is predicted As well as paying employers’ National Insurance contributions, it also protects the public sector from increases. The move enabled the state to expand further into the private sector.

In the budget the Chancellor said most state workers will receive a 5 per cent to 6 per cent pay rise above inflation next year and also announced extra funding for public sector employers to cushion the NI rise, meaning the private sector faces a crisis. resulting in extra load.

Asda chairman Lord Rose became the latest senior figure to protest Ms Reeves’ decision on Friday. “very, very damaging” tax increases, He warned that the supermarket will now have to look closely at how many workers it can afford to employ.

Ms Rayner’s decision to allow councils to let staff work four day week Lib Dem-led letter revealed by Department for Housing, Communities and Local Government (DHCLG) South Cambridgeshire district council.

The letter stated that the “best value declaration” imposed by the previous government had not been renewed. The notice required the council to submit data to the Government on the impact of this move on taxpayers; ministers had formally requested an end to the four-day weekly “trial”.

‘End to micromanagement councils’

But the letter tells the council: “Whilst it is not government policy to support a general move to a four-day working week for five-day pay, we recognize that local authorities are independent employers who are rightfully responsible for this situation. management and organization of its workforce.

“In contrast, local voters are in the best position to make decisions about the effectiveness of local government services in their area.”

Deputy Prime Minister Ms Rayner is said to be “committed to working in partnership”, adding: “This means no more micro-managing of local governments.”

This represents a complete turnaround from last year, when then-housing minister Lee Rowley instructed councils to abandon four-day weeks or face financial penalties.

Labor insisted it was not government policy to work a four-day week for five days’ pay, but unions celebrated the news.

Fran Heathcote, general secretary of the PCS union, which represents civil servants and government workers, said: “We are pleased that another employer is seeing the benefits of a four-day working week and hope the UK Government will follow suit with more. “The enlightened attitude of the Scottish Government in testing the scheme.”

The union is lobbying government units to implement a four-day working week.

Ms Rayner, a central figure in the Labor Party’s workers’ rights reforms. has previously expressed strong support for a four-day work week.

“From a four-day workweek perspective, it comes back to the first question about flexible working: If you can deliver in a four-day workweek, why not?” he told business leaders at an event in May 2023.

While the Deputy Prime Minister does not believe that “you can prescribe everything to every person”, “most employers know that if you can provide a better work-life balance for people, you can keep your staff with better productivity.”