Liam Fox is keen to revive plans to simplify the process of hiring and firing workers.
The Conservative MP and former minister has called for Chancellor George Osborne to introduce the relaxation of employment protection laws as part of his Budget speech next month.
The Independent reports that Fox has had quite a bit of backing from his Tory peers.
The idea behind the relaxation is that it will improve the economy, making it easier for businesses to replace slacking workers with productive employees. It could potentially help to create more vacancies for jobs in London and the rest of the UK.
In a comment piece for The Financial Times, Fox explained: “To restore competitiveness, we must begin by deregulating the labour market. Political objections must be overridden. It is too difficult to hire and fire, and too expensive to take on new employees.
“It is intellectually unsustainable to believe that workplace rights should remain untouchable while output and employment are clearly cyclical.”
Conservative MPs called for similar changes to employment protection laws last year, but were met with fierce opposition from Liberal Democrat ministers – including party leader Nick Clegg. However, the Tories and Lib Dems have agreed on an unoffical consultation to discuss the worth of such changes.