Evidence-based policy-making?

Why are they doing this?  There is no evidence that it will contribute to increased employment or to the growth agenda.  The Independent reports:

It is the most radical shake-up of employment law for decades – but even the Business Secretary admits there is no evidence it will boost the economy. The controversial Downing Street plan to allow employers to fire three million workers "at will" was kept alive by Vince Cable yesterday, albeit with no ringing endorsement from the Liberal Democrat cabinet minister.

Is it just to keep the Tory cronies in the City happy?  Victorian values indeed ...