British tycoon Sir Martin Sorrell has cast doubt on the notion that changing the working week will enhance productivity in the UK, challenging Prime Minister Keir Starmer‘s promises to revolutionise the nation’s work ethos.
Starmer has pledged to “level up workers’ rights” across Britain, advocating for a default right to flexible working which he believes will render employees more productive and committed.
Yet, Sorrell, the mastermind behind advertising behemoth WPP and now at the helm of S4 Capital, expressed his scepticism to City AM.
: “What we need is stability and a business environment that fosters investment and drives productivity. Experiments with the working week or working hours don’t help,” he remarked.
His remarks emerge as Business Secretary Jonathan Reynolds informed The Times that allowing staff the option to work from home and to disconnect from work-related emails or calls after hours could render them more “motivated and resilient”. He also noted that there are “real economic benefits” to adopting more flexible working practices, as reported by City AM.
The government is currently in the process of crafting a raft of reforms designed to revamp workers’ rights, with an employment rights bill anticipated to be tabled next month.
This bill is set to outlaw the use of unfair zero-hours contracts and establish immediate protections for workers, in what Starmer has described as the most significant overhaul of workers’ rights in decades.
However, business organisations like the CBI have voiced their apprehensions regarding these plans, with some cautioning that such measures might impede economic growth.
Sorrell shared these concerns, instead advocating for “investment tax credits or accelerated depreciation tangible measures that encourage businesses to invest and grow.”
He also expressed opposition to other impending changes, such as a potential increase in capital gains tax, which Chancellor Rachel Reeves may introduce to address a significant £22bn “black hole” in public finances.
Sorrell cautioned that “Increasing capital gains tax, especially without index-linking or time apportionment, will drive entrepreneurs and business owners out of the UK,”.
“In a digital world, talent is mobile, and many countries are offering far more attractive tax incentives,” he added. “Changes to property and inheritance taxes would only exacerbate the problem, making the UK less competitive on a global scale.”
Goldman Sachs has forecast that the Chancellor will need to raise taxes by at least £15bn to £20bn in the October Budget, with pension reliefs also likely to be reviewed.