Businesses pushed to ‘dangerous precipice’ as new Rayner laws bite

The article reports that the new Employment Rights Act, led by Angela Rayner, will require statutory sick pay from the first day of absence and enhanced paternity rights, coming into force the week of April 5, 2026. Business groups including the CBI and FSB warn the measures — together with recent NICs, business rate rises and a 34% increase in the National Living Wage over four years — will raise employer costs, stifle investment and hiring, and risk higher unemployment. Market impact: the measures increase policy and political risk for UK businesses, potentially weighing on investor sentiment toward UK equities (UK 100), especially domestically focused and small-cap firms, and could pressure growth expectations and corporate profitability.