A four-day working week is ‘no threat to the economy’, the Deputy Prime Minister has said as she vowed to ‘work with’ town halls.

Angela Rayner suggested four-day weeks, which the previous government described as ‘part-time work for full-time pay’, could improve productivity in local government.

Conservative shadow local government secretary Kemi Badenoch described the arrangement as ‘unacceptable’ at the House of Commons despatch box on Monday.

South Cambridgeshire District Council, which allows its employees to ‘deliver 100 per cent of their work in around 80 per cent of their hours for 100 per cent of their pay’, received a best value notice from the then Department for Levelling Up, Housing and Communities last November, warning that ‘the removal of up to a fifth of the capacity of the council means that it is unlikely, in aggregate, for it to be able to support continuous improvement’.

Deputy PM Angela Rayner denied that a four-day working week was a ‘threat to the economy’ and suggested that the move could improve productivity in local government

Tory leadership candidate Kemi Badenoch described the proposals as ‘unacceptable’

South Cambridgeshire District Council received a best value notice from the then Department for Levelling Up, Housing and Communities last November

Ms Badenoch asked: ‘Does (Ms Rayner) agree that reducing the capacity of councils by 20 per cent by allowing workers an additional paid day off every week, which is what a four-day week actually is, is unacceptable and does not provide good value for money to taxpayers or residents?’

Labour’s Deputy Prime Minister, who is also the Local Government Secretary, replied: ‘I’m really proud of our Employment Rights Bill, and I’m really proud to stand here as someone who says and advocates for flexible working.

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‘We don’t dictate to councils how they run their services. We work with councils and I think (Ms Badenoch) should be able to work out that flexible working is no threat to business, no threat to the economy, in fact, it would boost productivity.’

Conservative former local government minister Simon Hoare told the Commons last January: ‘The Government has been crystal clear that it does not support any attempt from local authorities to implement part-time work for full-time pay.’

On Monday, Ms Badenoch asked the Government front bench about the Employment Rights Bill’s impact on councils’ costs, and whether they would receive compensation.

In January, the previous local government minister Simon Hoare  (pictured) insisted the Government didn’t support attempts to introduce ‘part-time work for full-time pay’ in local authorities

‘Local authorities employ two million people, they commission services like adult social care, which the Employment Rights Bill impact assessment says will increase cost,’ she warned.

‘Those costs are likely to be passed on to councils. So has she assessed the impact of (the Bill) and an increase in employer’s national insurance, specifically on local authorities and if the costs are increased, will councils be compensated?’

Communities minister Jim McMahon replied: ‘Any decisions related to the Budget will be taken at the appropriate time. Any decision on local government finance settlement will be taken at the appropriate time.’