Liberating the labour market: How reforming employment regulation can boost British growth

A free competitive market offers wide opportunities for individuals and businesses and is compatible with the framework of classical liberalism. It is also the best environment for boosting productivity and economic growth. * Theere are uncompetitive elements within the UK's private sector which may distort market outcomes, but the growth of employment regulation in the last fifty years is a major contributor to our slow economic growth and stagnant real wages. * Government interventions in the labour market are ostensibly intended to redress market failures and promote social justice, but they may not always serve these purposes. * The Employment Rights Bill going through Parliament is likely to exacerbate the problems of the UK economy and will do little to promote growth. * Serious deregulation of the labour market is not currently on the political agenda but may eventually become a necessity. There are, however, considerable barriers to reform. * Some key areas for practical reform are discussed, such as discrimination and equal pay, education and training, unfair dismissal, and occupational regulation. * A more radical, 'minimalist' approach to regulation is also possible, though this would require a major shift of opinion among both policymakers and the general public.