The OBR's Economic and Fiscal Outlook says the Employment Rights Act will likely have a negative effect on the economy, according to City AM. City AM quotes the document's wording directly, which bears out the Spectator's earlier report.
"Our analysis suggests that the ERA will likely have a negative economic impact from negative impacts on businesses."
City AM reports that this is the OBR's first assessment of the act's economic impact. It says the OBR judges the final act to be substantially less damaging to businesses than the original 2024 proposals. Those plans were watered down from unfair dismissal rights from day one to a six-month qualifying period.
Guido Fawkes, also quoting the outlook, reports that the OBR finds there is "currently not clear evidence that this negative impact is above our 0.1 per cent potential output" threshold. That wording has not been independently checked against the EFO.
City AM also reports that protection from third-party harassment under the act takes effect on Friday.