Reeves under siege after two dire business surveys

Rachel Reeves is facing another major warning over her hopes to spark economic growth as the organisation which represents Britain’s retailers lashed out at the impact of Labour’s Employment Rights Bill.

- DAVID MADDOX POLITICAL EDITOR

According to a survey by the British Retail Consortium, more than half of retail HR directors say the Employment Rights Bill will reduce hiring and job flexibility.

And 70 per cent claim the bill will have a negative impact on their businesses.

The row comes as the House of Lords debates the bill today.

The chancellor has found herself under siege over a flatlining economy, with overnight warnings from business groups and major think tanks on the government’s policies and its record after nine months in office.

With anger over hikes to national insurance and cuts to welfare payments for the disabled as well as winter fuel payments for 10 million pensioners, Ms Reeves has found herself with a near impossible task.

Added to that, the chancellor spent most of last week in Washington DC trying to improve relations with the US and get a trade deal with Donald Trump while talking up the UK economy to investors.

There will be hope that the arrival of the EU’s trade negotiator, commissioner Maros Sefcovic, for Brexit reset talks will help spark a turnaround when a deal is announced on 19 May.

But despite also promising massive planning reforms to spur a building bonanza, Ms Reeves is facing an onslaught over the impact of her policies so far.

Leading the way, the Confederation of British Industry (CBI) has warned that private sector firms once again expect activity to fall in the three months to July (weighted balance of -21%).