Political Monitor | April 28th, 2025 Edition

In the week Keir Starmer met with Ursula von der Leyen at an energy summit, Nick Thomas-Symonds, Cabinet Office Minister, stated that the UK Government’s ‘reset’ deal with the EU will focus on growth and pragmatic solutions (including a potential 12 month youth visa), as Government prepares for the ‘reset’ UK-EU Summit on 19^th May.

Other Key News

• Chancellor Rachel Reeves has downplayed expectations of a quick UK-US trade deal, insisting that the UK will not rush negotiations.
• Business Secretary Jonathan Reynolds plans to visit China later this year to rejuvenate a crucial joint trade commission despite security concerns.
• Strike Threats Rise Over Public Sector Pay Disputes: Rises of up to 5% recommended for NHS staff and teachers by independent bodies.

The Week Ahead

(Today) Monday 28 April: Oral Questions for the Department for Education.

Tuesday 29 April: Day one of the Lords Committee stage for the Employment Rights Bill, and an Oral Evidence session hosted by the Foreign Affairs Committee on rebuilding a strategic partnership with the EU.

Data (Use and Access) Bill: The Bill will enter its Report stage in the House of Commons on Wednesday 7^th May.

Thursday 1 May: The hotly contested Runcorn by-election alongside Local Council Elections and mayoralty contests are set to take place – which will test the Government’s popularity.

Thursday 1 May – Tuesday 6 May: Parliament will rise for Mayday Recess.

APSCo News

APSCo has distributed a briefing note to relevant Peers arguing that the legislation’s one-size-fits-all approach will undermine the flexibility of the UK labour market, hindering economic growth and reducing competitiveness, and offering our recommendations. The briefing note can be found here.

Parliament & Regulation

Employment Rights Bill:

The Bill is moving to the Committee Stage in the Lords, due to begin on Tuesday 29^th April. The full list of proposed amendments to the Bill as they currently stand can be found here.

The British Chambers of Commerce, CBI, Institute of Directors, Federation of Small Business, and Make UK have written to the House of Lords regarding their concerns about the Bill, warning it could harm growth and living standards.

TUC General Secretary Paul Nowak has downplayed warnings of a £5 billion cost to employers from the Employment Rights Bill, arguing it is necessary to improve working conditions and tackle low-paid, insecure employment.

HMRC Consultations

The Government published the following consultations on the back of the Spring Statement:

• Enhancing HMRC’s powers: Proposals to strengthen HMRC’s ability to take action against those tax advisers who facilitate noncompliance from their clients. Closes 7^th May.
• Better use of new and improved third party data: How HMRC can make better use of third-party data to increase automation and close the tax gap. Closes 21^th May.
• Closing in on behaviour of tax avoiders: A comprehensive package of measures to close in on promoters of marketed tax avoidance, whose contrived schemes leave their clients with unexpected tax bills. Closes 18^th June.
• Behavioural penalties reform: Options to simplify and strengthen HMRC’s inaccuracy and failure to notify penalties. Closes 18^th June.

Reports & Research

UK Services Sector Faces Mixed Economic Indicators

A recent House of Commons Library report shows that while UK services output increased by 1.8% from Dec 2024 to Feb 2025, the services PMI for April 2025 fell to 48.9, indicating contraction due to global economic uncertainty.

Business Leaders Urge Action to Prevent ‘Lost Generation’ of Young Workers

The British Chambers of Commerce warns that almost a million young people risk being cut off from work, education, and society without urgent Government action, calling for targeted youth employment support, SME incentives, and cross-departmental collaboration to tackle the rising NEET crisis and unlock a £69bn boost to UK output.

Establishing Skills England and Apprenticeship Reforms

The Education Committee’s session on further education and skills outlined Skills England’s operational launch, its data-driven approach to preparing young people for the workforce and plans to reform and streamline the apprenticeship system.