Political Monitor UK | July 21st Edition

Last week, Chancellor Rachel Reeves delivered her Mansion House speech outlining the Government’s Financial Services Growth and Competitiveness Strategy, aimed at reducing regulatory barriers and boosting the sector’s expansion. This comes amid economic challenges, including a surprise GDP decline of 0.1% in May and inflation rising to 3.6%.

Key points for APSCo include a new “concierge service” launching by October to support overseas companies investing in the UK, and an ambition to double financial services exports within ten years.

While the sector has largely welcomed the reforms, concerns persist over the timing and the absence of detailed fiscal plans ahead of the Autumn Budget.

Cavendish has circulated a detailed briefing note on the Mansion House speech which can be accessed here.

Other Key News

The Government has launched their £500 million Better Futures Fund to support up to 200,000 vulnerable children and with a strong focus on improving education outcomes and providing employment support to help young people secure brighter, more stable futures.
Health Secretary Wes Streeting has warned that planned strikes by resident doctors over pay could severely undermine public support for the NHS fuel arguments for an insurance-based system.
The Government’s Compute Roadmap sets out a £2 billion, long-term strategy to transform the nation’s compute infrastructure into a world-leading, secure, and sustainable ecosystem that powers innovation, scientific discovery, and AI development across public and private sectors.

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

Also find an insight report on the projected continued rise of Reform in next year’s mayoral and local elections here.

The Week Ahead

The House of Commons will rise for recess on Tuesday 22nd July and will return on 1st September. The House of Lords will rise on Thursday 24^th July and will return on Monday 1st September.

Monday 21st July Lords – Day three of the Report Stage for the Employment Rights Bill, as well as:

Oral Questions for the Department for Education
Oral Questions on artificial intelligence legislation, led by Lord Holmes of Richmond (Conservative, Communications and Digital Committee)
Oral Questions on the regional effects of the reduction in staff costs for NHS England, led by Lord Scriven (Liberal Democrat Lords Spokesperson for Health)

Wednesday 23^rd July – Day four of the Report Stage for the Employment Rights Bill, Oral Questions on the jobs market and the wider economy, led by Lord Hunt of Wirral (Shadow Minister for Business and Trade), and Oral Questions on pension saving and adequacy for low-income and self-employed workers, led by Viscount Younger of Leckie (Shadow Minister for Work and Pensions).

Parliament & Regulation

Employment Rights Bill:

The first two days of the Report Stage in the House of Lords saw a major amendment passed allowed workers the right to request guaranteed hours rather than obligating employers to offer them, aiming to balance worker security and sector flexibility. The Government clarified that workers could still retain zero-hours contracts if preferred. There were also debates around defining “short notice” for shift cancellations, with a 48-hour minimum proposed to protect vulnerable workers, including temporary staff.

APSCo submitted technical recommendations to the Minister for Employment and Labour Lords before the session, proposing five changes: easing "fire and rehire" restrictions, extending the reference period for guaranteed hours to 12 months, setting a 12-month threshold for day-one rights, retaining the current statutory sick pay waiting period, and requiring impact assessments for all new regulations. APSCo also urged reforms to and clearer timelines for expanding tribunal capacity.

Reports & Research

Association of Directors of Adult Social Services (ADASS):

The ADASS Spring Survey 2025 highlights mounting financial pressures, growing demand, and a lack of investment in prevention within adult social care, warning that without adequate funding and support, councils will struggle to meet legal duties, contribute to Government reforms, or improve services despite recognising where investment would have the greatest impact.

APSCo

uk.apsco.org

@APSCo_org

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