APSCo Autumn Budget 2025 Submission on Behalf of Members

We urge HM Treasury not to increase taxation on employers and, to focus this Budget on regulatory and tax reform measures designed to support controlled labour market flexibility. 

Digitalisation and technology are critical to productivity. Contracting and a flexible labour market offer an alternative to costly external consultancy on digitalisation, delivering internal ownership of the budget and project timelines, allowing greater access to niche highly skilled professionals. 

We invite HM Treasury to recognise the recruitment and workforce solutions sectors as supportive partners, and UK success stories that should be encouraged, rather than excluded from supply chains. 

To this end, we are calling on HM Treasury to fund:

• Even tougher regulation of the umbrella market, including a licencing scheme and greater data sharing with recruiters. 
  
• A review of employment status for tax including defining the self-employed and guidance on consultancy/contracted out services to provide confidence to UK business and the public sector to supply and use such services.
  
• The Fair Work Agency and reform of Employment Tribunals and ACAS fully.
  
• NHS workforce innovation including standardised cross-ecosystem compliance, re-funding a digital work passport and partnership with key stakeholders, recognising the value of temporary workers and consultants.
  
• Steps to ensure the Growth and Skills Levy and surplus Immigration Skills Charge funds are fully allocated to domestic skills initiatives.