WORKERS’ rights are at risk of being “watered down” as part of David Cameron’s EU renegotiation, Labour MPs warned yesterday.

A commitment to “enhance competitiveness” was part of a deal struck between the Prime Minister and European Council president Donald Tusk published yesterday.

“We will regularly assess progress in simplifying legislation and reducing [the] burden on business so that red tape is cut,” Mr Tusk wrote in a letter to leaders of other EU member states.

Speaking in a parliamentary debate on the deal, Labour MP Andrew Gwynne said: “For me, that is code for reducing workers’ rights.”

And shadow equalities minister Cat Smith asked: “At any point, has the government tried to negotiate away or water down British workers’ rights?”

Bizarrely, Tory Europe Minister David Lidington replied: “Nobody is talking about sending little children up to sweep chimneys these days.

“Cutting regulatory costs upon business, in order to spur job creation and economic growth, is something that’s perfectly compatible with decent rights at work,” he insisted.

The Star has previously reported that bosses’ lobbying group the CBI has criticised laws limiting working hours more than any other EU policy.

But TUC general secretary Frances O’Grady, who supports Britain’s EU membership, said that the deregulation rhetoric would boost support to leave.

“So far, all we’ve heard about is the benefits of the EU for big business, but people won’t vote for putting the interests of the City ahead of the needs and aspirations of the rest of us.”

The trade union federation is concerned at proposals for a “red card” that could give member states the power to veto new and existing EU legislation.

It would be “just another way for [Mr Cameron] to try and stop people in Britain getting better rights and protections at work from future EU agreements,” Ms O’Grady said.

She also criticised the “emergency break” on in-work benefits for EU migrants, saying it did not address the “root problem” of “bad bosses who use migrants to undercut other workers.”

The referendum on Britain’s EU membership could come as soon as this summer if the Prime Minister’s proposal is accepted at the European Council later this month.