The Association of Professional Staffing Companies (APSCo) has responded to today’s news that Prime Minister Sir Keir Starmer has announced his resignation, triggering a leadership transition within Government.
Starmer spoke from the podium outside of 10 Downing Street to confirm that he will remain in post as Prime Minister until the contest is complete and “will do everything I can to ensure an orderly handover of power.”
Tania Bowers, Global Public Policy Director at APSCo UK and OutSource says:
“The Prime Minister’s resignation comes at a critical moment for the UK economy and labour market. After a relatively strong start to the year, more recent data – including OBR-linked forecasts and broader labour market indicators – suggests that hiring activity is beginning to stall, with employers becoming increasingly cautious about adding headcount. Sadly, the OBR has just announced difficulties with its reporting over the next quarter.
Against this backdrop, businesses and skilled professionals need stability, clarity and confidence in both Government direction and the UK’s relationship with financial markets. Continued political uncertainty risks delaying hiring decisions further at a time when economic momentum is already fragile.
The emergence of Andy Burnham as the leading contender for the leadership may offer some short-term parliamentary stability. He is widely regarded as a popular figure among MPs, which could support the passage of policy. However, there remains limited clarity at this stage on his stance towards business and the professional services sector, beyond signals such as increased public ownership in areas like utilities.
For the professional staffing sector, the direction of employment policy will be particularly important. While APSCo supports fair and proportionate protections for workers, the extension of zero-hours contract measures to agency workers presents significant practical challenges. Flexible, project-based work must be excluded. Agency work is a highly successful sector that already offers strong protections, access to high-quality roles, and vital workforce agility for UK businesses.
On industrial strategy and devolution APSCo recognises that the outgoing administration has laid important foundations. There is a strong case for maintaining continuity in these areas during this Parliament, especially so close to the next fiscal event.
If the new leadership is serious about driving growth, loosening restrictions on the Growth and Skills Levy to better support mid-career upskilling and reskilling will be critical to addressing the UK’s long-standing skills gaps and improving productivity.
APSCo calls on the incoming Government to prioritise economic stability, maintain constructive engagement with business, and work closely with the professional staffing sector to ensure that regulation supports — rather than constrains — growth, innovation and workforce flexibility.”