Labour policies will cost businesses and consumers billions of pounds and create mountains of red tape, a new report warns.
Sir Keir Starmer’s plan to introduce 62 new regulations will have “far-reaching economic consequences”, according to the Institute of Economic Affairs.
This is more than double the amount contained in the Conservative Party manifesto and 48 more than proposed by Nigel Farage’s Reform UK.
The Liberal Democrats have proposed the most new regulations, with 128 policy measures, followed by the Green Party at 104.
Details of the cumbersome red-tape were unearthed by the Think Tank following a forensic analysis of each party’s general election manifesto.
It finds a total of 361 policies that would increase the regulatory burden on businesses, compared to just 67 that would decrease it.
Labour’s manifesto includes 62 proposals to increase the regulatory burden, compared to 13 proposed reductions.
The Conservatives have proposed 28 new regulatory measures and 20 that would reduce the regulatory burden.
Reform UK has put forward 14 increases and 15 decreases.
The proposals range from relatively trivial policies, like the Green Party’s compulsory hedgehog holes in all new fencing, to the Labour Party’s plan to increase the minimum wage, apply it to all age groups, and extend equal pay duties.
The Conservatives, Labour and SNP have also backed ‘Martyn’s Law’ terrorism risk assessments for hospitality and night time venues, which the government’s impact assessment found would cost £2.7 billion.
The IEA’s briefing document, Shadow Expenses: Uncosted Regulatory Burdens in Election Manifestos, highlights that no party has presented costings for their regulatory proposals despite claims of offering “fully costed” manifestos.
It warns that the economic impact of these regulatory changes is likely to be larger than the proposed fiscal changes for many parties.
Labour has proposed five tax-raising measures, which are expected to increase revenues by £8.6 billion.
Just one Labour policy, requiring privately rented homes to meet minimum energy standards, would cost £12.2 billion according to the government’s impact assessment.
Liberal Democrats and the Green Party have included the same policy in their manifestos.
The Centre for Economics and Business Research has estimated that the 2030 ban on the sale of new petrol and diesel cars – a Labour, Green Party, Liberal Democrats policy – will cost an extra £1,000 per household per year from 2022 until 2050.
The government’s impact assessment for the Renters (Reform) Bill found a cost to business of £1 billion.
This is a policy pledged by the Conservatives, Labour, Green Party and the Liberal Democrats.
Meanwhile, the government’s impact assessment found that the football regulator – a Conservative, Labour and Liberal Democrat policy – would cost clubs £79.9 million.
Matthew Lesh, the author of the paper and IEA Director of Public Policy and Communications, also welcomed some manifesto commitments, such as planning reforms, that could reduce business burdens and grow the economy.
However, he warns that the overall trend is towards increased compliance requirements.
Mr Lesh said: “The major parties are proposing a tsunami of new regulations that could significantly increase costs for businesses and consumers.
“These policies will have far-reaching economic consequences, from banning petrol cars to mandating higher energy efficiency standards.
“It’s concerning that parties claim to have ‘fully costed’ manifestos while ignoring the substantial costs of their regulatory proposals.
“Voters deserve transparency about the true impact of platforms on their wallets and the wider economy.
“While some regulations serve important purposes, the sheer volume proposed risks higher prices, lower wages, and stifled innovation.
“Parties should carefully consider the costs and benefits of new rules, rather than defaulting to more red tape in the face of every challenge.”