APSCo and the REC have responded to the resignation of Sir Keir Starmer as Prime Minister, highlighting the need for stability despite the change of person at the top of Government.
“More change in Whitehall could be a challenge to the stability firms need, but business are adept at getting on with it,” said Recruitment and Employment Confederation (REC) Chief Executive Neil Carberry. “Whoever is Prime Minister, one thing will remain true though – only private sector growth can address the fiscal challenges the government faces and put money in the pockets of people across the country.
“What firms really need is a government that will back them to deliver growth, rather than making trading more difficult by heaping up ever more regulatory and taxation costs,” he added. “That means making sure that government works with business to achieve its aims, rather than imposing solutions that sound good to Westminster think-tanks and more radical union leaders, but do not help ordinary workers and companies who are trying to drive the country forward. Pragmatism on the unworkable approach to guaranteed hours set out by the Employment Rights Act would be a good first step in working out whether any new Prime Minister really has growth and prosperity at the heart of their plan.”
“The Prime Minister’s resignation comes at a critical moment for the UK economy and labour market,” says Tania Bowers, Global Public Policy Director at APSCo UK and OutSource. “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.”
Bowers continues to say that 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,” she notes.
Bowers also says 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,” she says. “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.”
Bowers also says the direction of employment policy will be particularly important for businesses. and while APSCo supports fair and proportionate protections for workers, the extension of zero-hours contract measures to agency workers presents significant practical challenges.
“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,” says Bowers. “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.”
