Four-day week ‘no threat to the economy’, says Angela Rayner

A four-day working week is “no threat to the economy”, the Deputy Prime Minister has said as she vowed to “work with” town halls.

Angela Rayner suggested four-day weeks, which the previous government described as “part-time work for full-time pay”, could improve productivity in local government.

Conservative shadow local government secretary Kemi Badenoch described the arrangement as “unacceptable” at the House of Commons despatch box on Monday.

South Cambridgeshire District Council, which allows its employees to “deliver 100% of their work in around 80% of their hours for 100% of their pay”, received a best value notice from the then Department for Levelling Up, Housing and Communities last November, warning that “the removal of up to a fifth of the capacity of the council means that it is unlikely, in aggregate, for it to be able to support continuous improvement”.

Ms Badenoch asked: “Does (Ms Rayner) agree that reducing the capacity of councils by 20% by allowing workers an additional paid day off every week, which is what a four-day week actually is, is unacceptable and does not provide good value for money to taxpayers or residents?”

Labour’s Deputy Prime Minister, who is also the Local Government Secretary, replied: “I’m really proud of our Employment Rights Bill, and I’m really proud to stand here as someone who says and advocates for flexible working.

“We don’t dictate to councils how they run their services. We work with councils and I think (Ms Badenoch) should be able to work out that flexible working is no threat to business, no threat to the economy, in fact, it would boost productivity.”

Conservative former local government minister Simon Hoare told the Commons last January: “The Government has been crystal clear that it does not support any attempt from local authorities to implement part-time work for full-time pay.”

On Monday, Ms Badenoch asked the Government front bench about the Employment Rights Bill’s impact on councils’ costs, and whether they would receive compensation.

“Local authorities employ two million people, they commission services like adult social care, which the Employment Rights Bill impact assessment says will increase cost,” she warned.

“Those costs are likely to be passed on to councils. So has she assessed the impact of (the Bill) and an increase in employer’s national insurance, specifically on local authorities and if the costs are increased, will councils be compensated?”

Communities minister Jim McMahon replied: “Any decisions related to the Budget will be taken at the appropriate time. Any decision on local government finance settlement will be taken at the appropriate time.”

Chancellor Rachel Reeves is due to unveil her first Budget since the general election on Wednesday.

Turning to Labour’s proposed private rented sector reforms, Conservative MP Gagan Mohindra (South West Hertfordshire) asked: “At a time when people are struggling to get on the property ladder, why is this Government determined to drive out landlords and reduce the supply of available rental properties for those who rely on them?”

Housing minister Matthew Pennycook told MPs: “Our Renters Rights Bill that we are currently debating in committee poses no threat to good landlords. Indeed, I think it will improve the situation for good landlords by driving out unscrupulous and rogue landlords from the system.

“And landlords as part of that Bill have robust grounds for taking back possession of their properties when it’s appropriate to do so. What they cannot do is arbitrarily evict tenants through Section 21 – we’re going to finally abolish Section 21 no-fault evictions where the previous government failed to do so.”