The Telegraph carries a story that will enrage the right and unnerve businesses. Business Secretary Vince
Cable has agreed to introduce a controversial EU directive to award agency workers the same rights
as full time employees. This means that agency workers will be entitled to full holiday pay, maternity leave and so forth, as well as awarding temporary workers equal redundancy rights and basic
pay. The Treasury hopes to raise an additional £332 million a year through taxes on higher wages, but that will depend on these regulations having a positive effect on the Labour market.
Businesses say that this will dramatically increase their costs and they warn that they will have to cut jobs.
With growth at a meagre 0.2 per cent in the last quarter, the economy desperately needs businesses to expand. But further regulations make it likely that companies will retrench.
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