Labour’s warring factions apparently agreed a truce for the long-arranged King’s Speech today. As expected the Speech announced bills intended to drive forward the Government’s growth agenda on closer EU alignment, energy independence, technological innovation through digital ID and NHS reform, alongside an immigration bill immediately at risk from Labour backbenchers.
Tania Bowers, Global Public Policy Director at APSCo UK and OutSource commented:
“Today’s speech led with the importance of UK energy, defence and economic security and the criticality of controlling the cost of living; raising growth, reducing prices. Eyes are on the cost of Government borrowing following the speech, although Starmer’s leadership battle will have greater impact on the City.
Recruiters are reporting reticent client hiring intentions in light of geopolitical challenges and more recently the dramatic local election results. This King’s Speech is unlikely to alter the Government’s trajectory. If the Government can deliver swiftly on planning reform, green energy infrastructure, greater AI innovation and Digital IDs then there may be a glimmer of hope.
However, recruiters are struggling with increased employment costs, increased regulation and a skills policy that is not aligned to business needs. Payment reforms should help SMEs, but to reduce costs, to create jobs and increase delivery then non-critical regulatory change must be put on hold, including bringing agency workers into any guaranteed hours reform. Skills policies must be co-designed with employers and workers, and the Growth and Skills Levy must support flexible training for the whole workforce, beyond apprenticeships and government-led programmes.
Recruiters supplying to the public sector are under pressure. NHS clinical healthcare suppliers have been hammered by government policies banning use of agency workers. Following announcement of the Bill to abolish NHS England, APSCo will continue to articulate the criticality of the temporary workforce to the NHS Trusts. In education, APSCo knows how much support temporary workers can provide to deliver SEND reforms.”