Despite being overshadowed by other political matters, the King’s Speech brought a variety of responses from the recruitment sector. Tania Bowers, Global Public Policy Director at APSCo UK and OutSource noted that the speech led with the importance of UK energy, defence and economic security and the criticality of controlling the cost of living; raising growth, reducing prices. She noted that the cost of Government borrowing following the speech is under scrutiny, although Starmer’s leadership battle will have greater impact on the City.
“Recruiters are reporting reticent client hiring intentions in light of geopolitical challenges and more recently the dramatic local election results,” said Bowers. “This King’s Speech is unlikely to alter the Government’s trajectory. If the Government can deliver swiftly on planning reform, green energy infrastructure, greater AI innovation and Digital IDs then there may be a glimmer of hope.
At the same time, however, Bowers said recruiters are struggling with increased employment costs, increased regulation and a skills policy that is not aligned to business needs. “Payment reforms should help SMEs, but to reduce costs, to create jobs and increase delivery then non-critical regulatory change must be put on hold, including bringing agency workers into any guaranteed hours reform,” she said. “Skills policies must be co-designed with employers and workers, and the Growth and Skills Levy must support flexible training for the whole workforce, beyond apprenticeships and government-led programmes.”
Bowers went on to note that recruiters supplying to the public sector are under particular pressure with NHS clinical healthcare suppliers being “hammered” by policies to ban the use of agency workers “Following the announcement of the Bill to abolish NHS England, APSCo will continue to articulate the criticality of the temporary workforce to the NHS Trusts. In education, APSCo knows how much support temporary workers can provide to deliver SEND reforms.”
Meanwhile, Neil Carberry, Chief Executive at the Recruitment and Employment Confederation said the Government had put its confidence in business to deliver growth in the speech. “It now needs to step on the gas and turn that ambition into law quickly, so firms can invest and expand with certainty,” he said. “Cutting unnecessary regulation is the right approach at a time of rapid technological change and will help position the UK as a leading destination for investment.
“The commitment to tackle late payments is long overdue,” said Carberry. “Too many good businesses hold back growth or fail because they do not get paid on time. Small firms and the self-employed should be able to focus their time and resources on running their businesses well and government must ensure they can do so.”
Carberry also noted that the REC has consistently supported digital verification arguing that it brings more people into work, simplifies hiring for employers and helps prevent fraud.
Ben Willmott, head of public policy at the CIPD said: “We welcome the Government’s continued focus on tackling youth unemployment and investing in apprenticeships and training opportunities for young people. However, there remains a significant gap between the Government’s ambition and action, and we need to see more concrete proposals on this. There isn’t a single mention of apprenticeships in the Government’s briefing document beyond the introduction, so it’s unclear how they will be addressing this beyond what is already planned.”
Willmott also said that while it was positive that the Government is trying to minimise the regulatory burden on organisations through its Regulating for Growth Bill, work is needed to ensure key measures in the Employment Rights Act still to be finalised do not undermine employment and growth.
“Some of the Act’s provisions, which are taking effect as employers grapple with rising costs and global instability, risk holding organisations back from the investment in their workforces that can generate the productivity and growth the economy urgently needs,” he said.
