Retail and Hospitality Sector

Baroness Jones of Whitchurch Excerpts

Thursday 22nd January 2026 Lords Chamber

[Baroness Jones of Whitchurch (Lab)]

My Lords, it gives me great pleasure to welcome my noble friend Lord John and thank him for his excellent maiden speech, which was both entertaining and wise, as befits a barrister of over 25 years’ standing. I am sure we were all impressed by his knowledge and insight into how best to develop commercial and residential spaces where communities can thrive. These challenges are faced by so many local councils up and down the country, and we have so much to learn about how to do this successfully.

The transformation of the Elephant and Castle site from a run-down housing estate and shopping centre to a highly desirable residential, commercial and retail centre is just one example of my noble friend’s skill as a hugely respected council leader in London. In fact, my noble friend Lord Spellar, who lives in the development at Elephant and Castle, described it as rather like one of the better parts of Manhattan. That is indeed praise for the work that my noble friend Lord John has succeeded in doing.

My noble friend Lord John has also been applying his expertise to work with other councils across London, helping to make London the thriving, attractive city it is becoming today. I know that his commitment to the arts, in particular his work with the Old Vic and the Central School of Ballet, will also be welcome across this House. He has a huge contribution to make to the work of this House, and I am sure he will continue to make that impact in the months and years to come. We will watch his progress with great interest.

There has been much criticism from the party opposite about the passing of the Employment Rights Act and its impact on the retail and hospitality sectors, but I am proud of the fact that the Government delivered their manifesto commitment to bring the UK’s outdated employment laws into the 21st century by passing the legislation in December. It will turn the page on an economy blighted by insecurity, poor productivity and low pay, which the previous Government were happy to see continue.

Instead, hundreds of thousands of the lowest-paid workers will be protected from exploitative zero-hours contracts for the first time, allowing them to manage their work and income and to plan for the future. Families will benefit from day-one rights for paternity, parental and bereavement leave. Workers will benefit from improved sick pay and will no longer have to choose between their health and financial hardship. The new Fair Work Agency will ensure that good businesses are not undercut by bad employers.

We are raising employment standards to those already enjoyed by the better employers in the retail and hospitality sectors. We are confident that these measures will be beneficial for employers, will help to keep people in work and will reduce employment costs for employers by increasing staff retention and creating a more loyal and motivated workforce.

The government report on the legal and economic implications of the Employment Rights Act supports our expectation that the Act will have a beneficial impact. For example, it shows that, far from being an outrider, the measures will simply bring the UK closer to the OECD average for employment law protections.

It also shows that in areas of new policy, such as zero-hours protections, the adoption of similar laws in other OECD countries has led to productivity and employment improvements. Its econometric analysis shows the Act as having a small positive effect on employment.

As the Bill was nearing its conclusion, representatives from the main business organisations wrote to the Secretary of State welcoming the outcome of the dialogue on the Bill, which they said

“represented a significant step forward which will have a positive impact on growth and opportunities”.

They went on to say that

“now is the time for Parliament to pass the Bill”.

This support from the business community was crucial to the passing of the Bill and set the way forward as to how we should work with businesses in the future. Underpinning these new rights will be a partnership between trade unions, employers and government, which will create a new spirit of co-operation. This partnership will be crucial as we move forward with the next phase of implementing the Act.

We have made it clear to businesses that these new rights will not be implemented overnight. We have always said that we would engage and consult comprehensively on the implementation of the measures in the Act to make sure that they work for everyone. This period of consultation has now begun, and it is important that all voices are heard and understood. The implementation road map sets out a timetable for the phased introduction of the new rights, ensuring that all stakeholders have time to adapt to the change so that it works for everyone. The consultation process will be supplemented by guidance and codes of practice, with ACAS and other delivery partners providing time and resources to support the process.

All this should mean that employers—particularly small and micro-businesses—have the time and the space needed to prepare, with tailored support where necessary. Does my noble friend the Minister agree that the business representatives in the hospitality and retail sectors should, crucially, play an active and positive role in shaping the detailed implementation of the legislation going forward so that their voices are properly heard? Does he agree that the Employment Rights Act, when fully implemented, should have a positive impact on the economy and on our vital growth agenda? I look forward to his response.