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Published: 18-Aug-25 | By APSCo
Public Policy

Political Monitor UK | August 18th Edition

Since the last monitor, it was found that only 57% of UK private sector employers plan to hire in the next three months - down from 65% in autumn 2024 - as rising payroll costs from higher National Insurance contributions, minimum wage increases, and economic uncertainty push hiring to its lowest level since the pandemic.

 

 

Other Key News

  • The National Institute of Economic and Social Research warned that Chancellor Rachel Reeves faces a £41.2 bn shortfall and will need sustained tax rises - potentially including council tax reform and changes to VAT or pension allowances - to meet her own borrowing rules.

  • Mayor for London Sadiq Khan has warned that Labour’s first year in power has been disappointing, saying the party must “pick things up” after losing voters’ trust, though he remains optimistic it can recover under Keir Starmer’s leadership.

  • MP for Brent East Dawn Butler has confirmed she will run to be the next Labour Mayor of London once Sadiq Khan steps down.

  • The Government is considering offering free HR advice vouchers to small businesses to ease the impact of the forthcoming Employment Rights Bill.

  • The FT argues that the success of the UK’s industrial strategy hinges on properly supporting older workers to remain in or return to the workforce, recognising demographic ageing as a central economic challenge rather than a peripheral issue.

  • The Government has expanded out-of-hours access at community diagnostic centres across England, enabling more evening and weekend health checks such as MRI scans, though experts warn investment in staff is vital to meet rising demand.

  • A new nursing module developed by Sheffield Hallam University and funded by NHS England aims to address the NHS staffing crisis by encouraging students to pursue careers in general practice, challenging outdated perceptions and improving workforce morale.

  • The NHS is trialling an AI tool at Chelsea and Westminster trust to automate discharge paperwork, aiming to cut delays, free up doctors’ time, reduce waiting lists and improve efficiency across public services.

  • Over 60 foreign TfL staff risk deportation after July 2025 visa rule changes raised the skilled worker salary threshold to £41,700 and removed key transport roles from eligibility, prompting union and political leaders to condemn the move as unfair and damaging to London’s workforce.

  • Nuffield Health has published an analysis on the decrease in the NHS’s waiting list and what the data shows.

 

Read our News and Blogs page on the website for APSCo’s latest Policy Talks (an update on policy activity).

 

 

APSCo News

Register for our policy meeting on 28th August – to discuss the umbrella reform draft, costs you expect to incur on ERB implementation and our Budget submission – what do you think the Chancellor needs to do? Its an online meeting so please do book in.

You know the legislative process is complex if you’ve been following the Employment Rights Bill! Read our new Legislation Explainer in which we simplify the process and explain how APSCo UK and OutSource influences the law.

 

 

The Week Ahead

 
Both Houses of Parliament are on recess until 1st September. As a result, most politicians are on holiday and political news is less prominent than usual.
 
 
 

Parliament & Regulation

 

Employment Rights Bill:

With Lords Report Stage now completed, the Third Reading of the Employment Rights Bill has been scheduled for Wednesday 3rd September, immediately after recess. The House of Commons will need to consider Lords amendments, but it is likely that the legislation will secure Royal Assent by October. 

 

 

Reports & Research

 

The Fabian Society launched its latest report “Growth and Opportunity: Making the Growth and Skills Levy Work” where they discussed how the levy aims to boost economic growth by giving employers greater flexibility to invest in workforce training and skills development.

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