Rachel Reeves has been accused of misleading the country over the state of public finances in the run-up to the Budget.
There were warnings ahead of the Budget that the chancellor could face as much as a £20 billion gap in meeting her self-imposed fiscal rule of not borrowing for day-to-day spending.
However a letter from the Office for Budget Responsibility (OBR) published Friday revealed that the funding gap would be significantly smaller.
The chancellor nonetheless presented the forecasts as unexpectedly bleak and argued for tax rises, insisting she must “deal with the world as I find it, not the world as I might wish it to be”.
Paul Johnson, a former head of the Institute for Fiscal Studies (IFS) think tank, said “it probably was misleading”.
“It was designed to confirm a narrative that there was a fiscal black hole that needed to be filled with significant tax rises,” he told The Times. “In fact, as she knew at the time, no such hole existed.”
In a statement, a HM Treasury spokesperson refused to “speculate” on Ms Reeves’ decision-making in the run-up to the Budget, but added she had “made her choices to cut the cost of living, hospital waiting lists, and double headroom”.
At the Budget on Wednesday, Ms Reeves hiked taxes by £26 billion, including by freezing thresholds on income tax.
Key Points
- Rachel Reeves accused of misleading Britain over Budget 'black hole'
- Badenoch calls for Reeves to quit over 'misleading public' on budget
- Downing Street refutes claims Reeves misled the public
- Keir Starmer waters down element of new workers' rights bill
Recap: ‘Mortified’ OBR chief prepared to resign if Reeves loses confidence in him over Budget leak
19:04 , Nicole Wootton-CaneAn "external person" may have been able to access the Office for Budget Responsibility’s (OBR) assessment of Rachel Reeves’ Budget, but its early release is not thought to have been a cyber attack.
The Economic and Fiscal Outlook (EFO) document appeared online more than half an hour before the Chancellor delivered her budget, a significant blunder that prompted an immediate investigation by OBR chair Richard Hughes.
Mr Hughes, who has enlisted a cyber security expert to look into the incident, stated he would be prepared to resign should he lose the confidence of the Chancellor and the Treasury Committee.
You can read more below...
OBR chief prepared to resign if Reeves loses confidence in him over Budget leak
Your Party or Our Party? Corbyn and Sultana announce options for fledgling party's name
18:29 , Nicole Wootton-CaneZarah Sultana and Jeremy Corbyn have announced the options under consideration for the new name of their party, currently known as Your Party.
Members will gather in Liverpool over the weekend for the party’s first conference, where they will also vote to establish a new leadership model for the group.
In a post on X, the party said names under consideration are Your Party, Our Party, Popular Alliance, and For The Many.
🚨 And we're live! 🚨
— Your Party (@thisisyourparty) November 28, 2025
The shortlist for our permanent name has just been published. Now it's over to you!
Members can now vote for their preference on the Your Party members' portal from now until 4pm Sunday 👇 pic.twitter.com/gUjHG9vpOC
Politics explained: Has Bridget Phillipson’s schools budget been trashed to pay for special needs?
18:00 , Nicole Wootton-Cane
Has Bridget Phillipson’s schools budget been trashed to pay for special needs?
Sadiq Khan labels Farage’s denial of teenage racism allegations ‘desperate’
17:31 , Nicole Wootton-CaneSadiq Khan has said Nigel Farage’s denials of claims he used racist and antisemitic language towards classmates during his time at Dulwich College are “desperate”.
Speaking to The Guardian, the London mayor said the claims from more than 20 individuals had reminded him of his own past.
He added he could not understand why the Reform UK leader had failed to apologise to his contemporaries. Mr Farage denies the allegations.
Chancellor made choices to 'cut the cost of living', Treasury insists
17:11 , Nicole Wootton-CaneThe Treasury has refused to be drawn on claims Rachel Reeves “misled” the public over the size of the fiscal black hole.
In a statement, a spokesperson said the chancellor had made her choices to “cut the cost of living, cut hospital waiting lists and double headroom to cut the cost of our debt”.
It added: "We take Budget security extremely seriously and believe it’s important to preserve a private space for Treasury–OBR policy and forecast discussions, so we welcome the OBR’s confirmation that this will not become usual practice.”
Your Budget questions answered by Gabriel Nussbaum
17:02 , Nicole Wootton-Cane
Your Budget questions answered: From pensions to ISAs and more
Income tax rate rises 'not dropped for political reason', Treasury source suggests
16:39 , Nicole Wootton-CaneRachel Reeves is facing pressure to explain her fiscal decisions this afternoon as the Office for Budget Responsibility (OBR) said she knew as early as September that a much-discussed black hole in public finances did not exist.
A Treasury source has reportedly now insisted the chancellor’s decision not to increase income tax rates was not due to political pressure, but instead a bid for increased headroom, according to The Guardian’s political editor Pippa Crear.
Negotiations on UK joining £130bn EU rearmament scheme fail
16:30 , Nicole Wootton-CaneTalks on the UK joining the European Union’s flagship £130 billion defence fund have failed.
Negotiations foundered over how much the UK should pay to participate in the EU’s Security Action for Europe (Safe) rearmament fund.
Reports suggested the UK rejected French demands to pay up to £5 billion to participate in the scheme.
Minister for European Union relations Nick Thomas-Symonds said it was “disappointing” but the UK was focused on obtaining “value for money”.
Former minister accuses Reeves of misleading the public
16:20 , James ReynoldsAmid growing scrutiny over Rachel Reeves’ assessment of public finances going into the budget, a former minister accused the chancellor of misleading the public.
John Glen MP, a member of the Treasury select committee, told The Times she had misled the public, in his estimation.
“She told the public she needed to make tough decisions to fill a gap in funding identified by the OBR,” he said.
“That was not true and she knew it was not true when she said it. It was all an elaborate ploy to try and excuse her decision to break her manifesto pledge on taxes.”
Workers' rights u-turn does not break manifesto pledge, claims senior minister
16:10 , James ReynoldsA senior minister has defended the government’s decision to scrap day-one workers’ rights against unfair dismissal amid more accusations it has broken its own manifesto promises.
Asked whether watering down the Bill was a U-turn, Ms Phillipson told BBC Breakfast: "I don't accept that characterisation, I'm afraid. The Employment Rights Bill represents the biggest upgrade to workers' rights in a generation."
Asked by Sky News if it was a broken promise, Ms Phillipson insisted it was not. She said: "In the manifesto, what we said was that we would work with trade unions, with businesses, with civil society, in consulting on those protections that we'd be bringing forward.
"So, there are both parts to that, within the manifesto, the important rights and the consultation."
Reeves had surplus of £4.2bn against her own targets by 31 October - OBR
16:00 , James Reynolds
Reeves needs to make the case for freezing income thresholds, says Baroness Harman
15:50 , James ReynoldsRachel Reeves must still “make the case” to the public that freezing income tax thresholds was the right way to raise taxes, Baroness Harriet Harman has argued.
The Labour peer told Sky News that the chancellor must convince voters of her decision to extend the freeze on income tax thresholds by three years.
The decision will raise money as more people are dragged into a higher tax band when their pay increases.
“The Labour members of parliament are happy about it. The markets essentially are happy about it. But she needs to make the case, and everybody in the government is going to need to make the case about it [to the public],” Baroness Harman said.
"This was a difficult thing to do, but it's been done in the fairest possible way, and it's for the good, because it will protect people's cost of living if they're on low incomes."
There is "no effective deterrent in the Channel", Starmer concedes
15:40 , James ReynoldsSir Keir Starmer admitted that there is “no effective deterrent in the Channel” as France allowed police to start intercepting small boats.
In a letter to French president Emmanuel Macron seen by Le Monde, the prime minister said France must do more to tackle the “shared burden” of irregular migration.
Starmer urged France begin tackling boats at sea in order to prevent people from reaching the UK.
“It is essential that we deploy these tactics this month … We have no effective deterrent in the Channel,” the letter read.
He said “if we cannot ... resolve this crisis together, those who follow us will try to do it in our place”, warning Labour successors may set nations against each other and lead the continent down “a very troubling path”.
Tories would reverse workers' rights that are 'bad for business', says Kemi
15:25 , James ReynoldsKemi Badenoch said a Conservative government would reverse measures in the Employment Rights Bill that were “bad for business”.
The Tory leader did not explicitly commit to returning the period before an employee can claim for unfair dismissal to two years.
Asked whether she would increase that period if she came to power, Mrs Badenoch told broadcasters: "What I have said is that the things that are in the Bill that are bad for growth, bad for jobs, bad for business, we will scrap them."
Adding that "quite a lot of the things in (the Bill) are really about unions, giving unions more power", she said: "This is not what the country needs right now.
"The reason why the UK is not growing is not because employees don't have enough rights. We don't have enough jobs."
No 10 denies Reeves misled over black hole
15:10 , James ReynoldsDowning Street defended the chancellor as she faced accusations she misled the public over the state of Britain’s finances in the lead-up to the budget.
The OBR revealed on Friday that Reeves had been told the spending gap had been closed altogether by October, before she laid out the case for raising taxes.
Read the full story:
No 10 denies Reeves misled over black hole as OBR letter challenges warnings
More than half of UK businesses planning to cut hiring following budget, poll finds
14:50 , James ReynoldsMore than half of UK businesses are planning to slow recruitment due to the fallout of this week’s budget, a new poll has found.
Some 56 per cent of business leaders said they were likely to hire fewer people than they had planned for ahead of Wednesday’s announcement.
Businesses were mostly spared from the targeted tax hikes, but measures like freezing income tax thresholds and hiking the minimum wage are expected to indirectly impact firms.
500 business leaders were polled on sentiment by WPI Strategy and Merlin Strategy.
Timeline as Reeves faces accusations of misleading the public
14:35 , James ReynoldsRachel Reeves was told by the OBR in September that prevailing economic winds meant the presumed £20bn gap in public finances would be much smaller than expected in the run up to the Budget.
Reeves now faces accusations she misled the public by stressing the need for tax rises as late as November. Here’s how it unfolded:
17 September: The OBR told the chancellor in its first forecast that the fiscal watchdog had only made small amends to its overall assessment of where public finances stood.
The black hole was estimated at £2.5 billion at this point.
31 October: The OBR told Reeves that she was now sitting on a surplus of some £4.2 billion, as inflation saw tax revenues increase.
4 November: Reeves delivers a crisis press conference warning that public finances are in dire straits, seen widely as a way to prepare the country for tax hikes - potentially a breach of manifesto promises.
13 November: The prospect of a hike in income tax rates - which was trailed for several weeks - were dropped on November 13, with the Treasury citing improved forecasting.
26 November: The chancellor delivers the Budget and raises taxes by £26 billion.
Warning on state of finances ‘probably misleading’ - former IFS head
14:20 , James ReynoldsPaul Johnson, a former head of the Institute for Fiscal Studies (IFS) think tank, said “it probably was misleading”.
“It was designed to confirm a narrative that there was a fiscal black hole that needed to be filled with significant tax rises,” he told The Times. “In fact, as she knew at the time, no such hole existed.”
Downing Street refutes claims Reeves misled the public
14:05 , James ReynoldsDowning Street was asked on Friday whether Ms Reeves' warnings of coming difficult decisions despite the OBR's improved forecasting meant she had misled the public and the markets in the run-up to the Budget.
"I don't accept that," the Prime Minister's official spokesman said.
He added: "As she set out in the speech that she gave here (Downing Street), she talked about the challenges the country was facing and she set out her decisions incredibly clearly at the Budget."
Badenoch calls for Reeves to quit over 'misleading public' on budget
14:02 , James ReynoldsKemi Badenoch called for the chancellor to lose her job amid accusations she misled Britain over the state of public finances.
"Yet more evidence, as if we needed it, that the Chancellor must be sacked,” the opposition leader said on Friday.
“For months Reeves has lied to the public to justify record tax hikes to pay for more welfare."
“Her Budget wasn’t about stability. It was about politics: bribing Labour MPs to save her own skin. Shameful."
Chancellor accused of misleading Britain over public finances
13:21 , James ReynoldsThe Chancellor was accused of misleading Britain over her assessment of the state of public finances ahead of the budget.
The Office for Budget Responsibility (OBR) said on Friday that a downgrade in productivity forecasts that Rachel Reeves had used to illustrate the “challenges” facing the nation had been more than offset by a rise in tax revenues due to inflation.
Richard Hughes, chairman of the OBR, wrote to the Treasury select committee and revealed that Reeves had been told in September that the OBR had only made small downgrades to its overall assessment.
Reeves had warned it would have “consequences” for people’s jobs and wages, and said she would have to raise taxes as a result.
Labour faces scrutiny over the decision to raise taxes in the budget, which the Institute for Fiscal Studies (IFS) think tank said amounts to a breach of manifesto promises. The prime minister has refuted the charge.
Breaking: France agrees to stop migrant boats at sea after pressure from Starmer
13:07 , Athena StavrouFrench police will intercept small boats at sea in an attempt to stop migrants crossing the Channel.
A document seen by French newspaper Le Monde, signed by four prefectures in the north of France, agrees that maritime police will start “planned operations” to intercept the dinghies. The push-backs will start initially at sea, and then be conducted in the “inland waters” of ports and channels, the paper reported.
Holly Bancroft has the full story:
France agrees to stop migrant boats at sea after pressure from Starmer
Businesses are changing their recruitment strategies after Budget, poll shows
12:48 , Athena StavrouBusinesses are preparing to slow hiring as a result of measures in the autumn Budget, which puts Britain on course for a record tax burden, a new snap poll suggests.
Some 56 per cent of business leaders said there were likely to be fewer hires than originally planned.
The poll of 500 business leaders was carried out by WPI Strategy and polling firm Merlin Strategy to gauge sentiment among businesses in the immediate aftermath of Wednesday’s Budget statement.
The extended freeze on income tax thresholds is seen as the most damaging impact of the Budget, with 47 per cent of business leaders saying it will have a negative impact on their business and staff, the survey showed.
Despite this, 45 per cent said it was a justified measure to raise revenue.
The poll also showed that 56 per cent of respondents felt it would have been better for the Government to raise income tax but leave all other taxes as they are.
Meanwhile, about two-thirds of business leaders fear they will be targeted with further tax rises in the near future.
What rights will still be given on day one of employment?
12:26 , Athena StavrouThe Employment Rights Bill is now expected to make only parental leave and sick pay available from day one of the job for all workers.
However, protection from unfair dismissal will now only be secured after six months, rather than on day one as was the case when the bill was introduced.
What is Labour’s Employment Rights Bill – and how has it changed?
12:04 , Athena StavrouThe government has come under fire for rowing back on a manifesto commitment as it changes a key element of its landmark workers’ bill.
Here is an overview of how the bill will change the workplace for employees across the UK:
What is Labour’s Employment Rights Bill – and how has it changed?
Backbenchers and union demand u-turn reversal
11:46 , Athena StavrouBackbench MPs and trade union have urged Sir Keir Starmer to reverse his u-turn on workers’ rights.
Labour MP for Middlesbrough and Thornaby East, Andy McDonald, branded the move a “complete betrayal” and vowed to push for its reversal.
He said: “we cannot support that halfway measure”, adding: “This is a wrong-headed move and I will campaign to have this concession reversed.”
Labour affiliated transport and travel union TSSA also urged the government to reinstate its plans to give workers the right to claim unfair dismissal from day one in the job.
“Our union has long campaigned for strong, meaningful rights from the first day of employment, arguing that day one protection is essential to safeguard workers from arbitrary and unjust treatment,” TSSA General Secretary, Maryam Eslamdoust said.
“This remains our position and it’s vital that the government thinks again about this damaging u-turn.”
Business groups welcome concession
11:13 , Athena StavrouBusiness groups welcomed Thursday’s concession, saying the qualifying period of six months was “crucial for businesses’ confidence to hire and to support employment, at the same time as protecting workers”.
The six business groups involved in discussions - including the British Chambers of Commerce, Confederation of British Industry, and Federation of Small Businesses - said the change addresses the “key problem that must be sorted in primary legislation”.
However, they warned that firms would “still have concerns” about many of the powers within the Bill, including thresholds for industrial action, guaranteed hours contracts and seasonal and temporary workers.
Pubs respond to Budget
10:55 , Athena StavrouWestminster news may have already moved on from Budget u-turns to workers’ rights u-turns - but businesses across the country are still trying to understand what Wednesdays announcement means for them.
Some pub owners have called the Budget a “disgrace - mainly attributing their feeling to the increase in minimum wage and some business rates.
Chris Welch, 39, who runs the Fishnet Tavern in north Tyneside told The Independent his business rates evaluation is set to increase by an extra £4,00 each year.
“It’s dark times for pubs and I doubt we will survive past August next year,” he said.
“This budget is a complete let down to small businesses up and down the country.”
Jo Loring, who runs the Cosy Dove in Newcastle, said the increase in his rateable value means he will have to pay £10,000 a year more.
“All of my suppliers are going to feel the same effect and pain,” he said.
“As a result cost of goods will inflate dramatically at wholesale level, this will be reflected at retail level as well. Can we charge more and still maintain custom is the question, the simple answer is no.
“This is now 2 years running that the budget is hitting business hard, to a point where many business people will say there is no reward for growth, or worse still they close as their business is no longer viable.”
Minister on accepting Bill had been 'watered down' by Lords
10:43 , Athena StavrouCabinet minister Bridget Phillipson had promised in September that “we will not accept any watering down by the Lords” of the Employment Rights Bill and “no ifs, no buts”, it would be delivered in full.
She told ITV’s Good Morning Britain on Friday: “We didn’t want to accept watering down by the Lords. What’s been happening in recent days is that discussions have taken place with trade unions, with business and government, in order to find a settled position and a way forward.
“The wider package of measures was too important to jeopardise and there will be progress on unfair dismissal. Currently, it’s two years before you can make a claim, that will come down to six months.”
The Education Secretary added: “What we said in our manifesto around employment rights was that we did want to bring in place day-one protections in a number of areas, but that all of that will be subject to consultation and discussion with businesses, with trade unions, with civil society and that’s precisely what we’ve done.”
Labour U-turn on workers' rights reform was pragmatic decision, says Phillipson
10:29 , Athena StavrouFull story: Starmer accused of ‘complete betrayal’ by Labour backbenchers after workers’ rights U-turn
10:09 , Athena Stavrou
Starmer accused of ‘betrayal’ by Labour MPs after workers’ rights U-turn
McDonnell brands U-turn a 'sellout'
09:49 , Athena StavrouFormer shadow chancellor John McDonnell has branded the government’s workers’ rights U-turn a “sell out”.
He wrote on X: “Is this a sellout? Yes it certainly is. If it’s unfair to sack someone, it’s unfair whenever it occurs whether it’s day one or after 6 months. The principle is fairness.”
Is this a sellout? Yes it certainly is. If it’s unfair to sack someone, it’s unfair whenever it occurs whether it’s day one or after 6 months. The principle is fairness. https://t.co/i7XOEgdgwH
— John McDonnell (@johnmcdonnellMP) November 27, 2025
Labour MP Leishman condemns employment rights change as ‘totally unacceptable’
09:30 , Athena StavrouThe Independent’s Whitehall editor Kate Devlin reports:
Labour MP Leishman condemns employment rights change as ‘totally unacceptable’Labour MP Brian Leishman told The Independent the move was “a broken promise.
Totally unacceptable.”It comes just a day after Mr Leishman, previously a serial rebel, praised the Labour government over the Budget.
At the time he described it as “a real Labour budget”.
Workers will have 'every reason to fear' after U-turn, Maskell says
09:16 , Athena StavrouYork MP Rachael Maskell accused the prime minister of going back on a key pledge in Labour’s election manifesto.
Her opposition to the U turn - prompted by an attempt to derail the new employment laws in the House of Lords - could signal trouble for the Government.
Ms Maskell was one of 47 Labour MPs who rebelled against proposed welfare curbs in July, forcing Downing St to back down.
She was suspended as a Labour MP as a result - and had the Party whip restored just three weeks ago.
Ms Maskell said: “I stood on a manifesto where we said we would put day one rights in place and that did include unfair dismissal, so of course I am deeply disappointed to hear these changes have been made.
“Above all this is is coming from the House of Lords, the unelected chamber.”
Ms Maskell said the part of the legislation that was being abandoned - delaying unfair dismissal rights from the first day of employment to six months - was “really important”.
“Employers have nothing to fear from day one rights but workers will have every reason to fear if an employers does not want day one rights,” she told the BBC.
A failure to compromise on workers rights would have 'jeopardised the bill', says Phillipson
09:00 , Athena StavrouThe Independent’s political correspondent Millie Cooke reports:
A failure to compromise on workers rights would have "jeopardised the bill and delayed things further by another year", Cabinet minister Bridget Phillipson has said.
Speaking to BBC Radio 4's Today programme, she insisted that the legislation still "represents the biggest upgrades to workers rights in a generation".
Referencing the decision to abandon day one rights to unfair dismissal, she said: "There's been discussion that's taken place between employers, trade unions and government in order to secure the passage of the Employment Rights Bill."
Because of the change that's been set out, that has been consulted upon and discussed, it now means we can take the bill forward, and that from April next year, millions of working people will have better rights at work around sick pay and parental leave.
"If we hadn't been able to get to a settled position, it could have jeopardised the bill and delayed things further by another year, and we didn't want to see that happen."
Asked whether they had fundamentally broken their manifesto, she said: "No, and sometimes in life, you have to be pragmatic in order to secure wider benefits."
Hospitality industry welcomes changes
08:39 , Athena StavrouThe hospitality sector has welcomed the changes being made to the government’s Employment Rights Bill.
Kate Nicholls, Chair of UKHospitality, said it was a “pragmatic change” addressing one of they industry’s key concerns.
“We made clear representations to the Government that a six-month qualifying period would be much more practical for businesses and maintain job opportunities for young people, and I’m glad they have acted on those concerns,” she said.
“The Employment Rights Bill will still bring substantial changes and extra cost to hospitality businesses. In light of the increases to wages, business rates and other costs coming in April, it would be sensible for the Government to delay the introduction of statutory sick pay from day one by six months.
“This would give businesses much-needed breathing room and avoid further damage to employment opportunities.”
What did Labour's manifesto say?
08:29 , Athena StavrouLabour’s manifesto explicitly promised to “consult fully with businesses, workers, and civil society on how to put our plans into practice before legislation is passed”.
“This will include banning exploitative zero-hours contracts; ending fire and rehire; and introducing basic rights from day one to parental leave, sick pay, and protection from unfair dismissal,” it said.
Implementation of Employment Rights Bill could have been delayed by years, Cabinet minister says
08:18 , Athena StavrouThe Independent’s political correspondent Millie Cooke reports:
There was a “very real prospect” the implementation of the Employment Rights Bill would have been delayed by years if the government had not made a U-turn over day one protections against unfair dismissal, Cabinet minister Bridget Phillipson said.
The education secretary told Sky News: “The Employment Rights Bill is the biggest upgrade to workers’ rights in a generation.
“There has been discussion on the point around unfair dismissal and the time period between businesses, the TUC and Government, and following that discussion there’s been agreement about the way forward, which is welcome.
“It means that the time limit will come down from two years to six months, and that runs alongside important day-one rights around sick pay and around parental leave. But the risk here was that if we didn’t make progress, those important rights wouldn’t come into force from April next year.”
She added: "There was a very real prospect that unless that discussion had taken place and a pragmatic approach was reached, that there would be years delay to that implementation."
What have Labour U-turned on?
08:04 , Athena StavrouMinisters have abandoned plans to give workers day-one protection against unfair dismissal in a U-turn that breaches the Labour manifesto.
Ministers have axed the proposal to cut the “qualifying period” for workers to make an unfair dismissal claim from 24 months to the first day in a new job, in a bid to get the legislation through Parliament.
The Government now intends to introduce the right after six months of service instead, while other day-one rights to paternity leave and sick pay are still set to go ahead, coming into effect in April 2026.
Unions: Legislation 'a shell of its former self'
08:01 , Athena StavrouUnite boss Sharon Graham said the Bill had become “a shell of its former self” while TUC general secretary Paul Nowak said the “absolute priority” was to get the legislation on to the statute books.
“Following the Government’s announcement, it is now vital that peers respect Labour’s manifesto mandate and that this Bill secures royal assent as quickly as possible,” Mr Nowak said.
Ms Graham said: “These constant row-backs will only damage workers’ confidence that the protections promised will be worth the wait. Labour needs to keep its promises.”
Phillipson denies Labour has breached its manifesto with employment rights U-turn
07:56 , Athena StavrouThe Independent’s political correspondent Millie Cooke reports:
Cabinet minister Bridget Phillipson denied that the concession on Labour's flagship employment rights bill was a broken manifesto promise, because Labour’s election document had committed to a consultation.
The manifesto said “we will consult fully with businesses, workers, and civil society on how to put our plans into practice before legislation is passed” but went on: “This will include banning exploitative zero hours contracts; ending fire and rehire; and introducing basic rights from day one to parental leave, sick pay, and protection from unfair dismissal.”
Asked if it was a broken promise, Ms Phillipson said: “In the manifesto, what we said was that we would work with trade unions, with business, with civil society, in consulting on those protections that we’d be bringing forward.
“So, there are both parts to that, within the manifesto, the important rights and the consultation.”
Labour MPs condemn Starmer's workers' rights U-turn
07:55 , Athena StavrouSir Keir Starmer is facing backbench anger after ministers abandoned plans to give workers day-one protection against unfair dismissal in a U-turn that breaches the Labour manifesto.
MPs including a former minister who spearheaded the Employment Rights Bill with ex-deputy leader Angela Rayner voiced concerns over the climbdown announced by the Government on Thursday night.
Labour MP for Middlesbrough and Thornaby East, Andy McDonald, branded the move a “complete betrayal” and vowed to push for its reversal.
He said: “we cannot support that halfway measure”, adding: “This is a wrong-headed move and I will campaign to have this concession reversed.”
Labour MP for Poole, Neil Duncan-Jordan, told the Press Association: “There has been no discussion with the PLP about this.
“The Lords don’t have primacy over a manifesto commitment, so why have we capitulated?”
Labour MP for York Central, Rachael Maskell, told PA: “Employers have nothing to fear from day-one rights, but workers have everything to fear from an employer who doesn’t want day-one rights.”
