Government and campaigns
This week’s Labour Party Conference in Liverpool saw the Prime Minister return with a clear message, challenging Reform’s political narrative and presenting an alternative vision. Ministers focused less on short-term promises and more on long-term planning with talk of being a government committed to stability, addressing political and economic challenges, and embedding policy over multiple years. The tone was disciplined rather than celebratory, centred on demonstrating economic credibility and aiming for national renewal. Despite lively debate on the fringes and recent political challenges, Labour emphasised that it wants to be judged on delivery in the years ahead in government.
Growth, job creation, and investment were central themes across the conference. The Prime Minister highlighted that difficult decisions lie ahead, rejecting both unfunded commitments and large-scale borrowing. Chancellor Rachel Reeves indicated that potential tax changes in November would be considered in response to global instability and long-term structural weaknesses in the UK economy.
The REC has long supported the Government’s growth agenda but emphasises that statements alone do not build business confidence. Many employers are still managing the effects of last year’s National Insurance increases and remain cautious about additional regulatory pressures, including the forthcoming Employment Rights Bill. Growth requires more than restraint; it requires certainty and a workforce system that encourages investment and hiring.
A major announcement was the new Youth Employment Guarantee, offering paid job placements for 18–24-year-olds who have spent 18 months not earning or learning. Refusal without reasonable cause could result in loss of benefits. The REC welcomes this ambition, particularly as new job postings fell nearly 4 percent in August 2025, with overall hiring activity also declining. Employers are ready to participate.
Experience with the previous Kickstart scheme shows that bureaucracy can undermine good intentions. To succeed, the programme must be easy to access, quick to process, and designed in partnership with employers. Temporary and flexible work should be recognised as legitimate entry routes into long-term employment. Reform of the skills levy should ensure placements include clear pathways for training and progression.
Keir Starmer confirmed that the UK will move away from the longstanding target of getting 50 percent of young people into university. Instead, two-thirds will pursue either university or high-quality apprenticeships. New Technical Excellence Colleges and additional investment in vocational training signal a shift in how the Government defines educational success.
In his speech, Business Secretary Peter Kyle highlighted plans to reduce regulatory burdens by 25 percent, describing current systems as cautious and stifling investment. Ministers emphasised that regulation must enable growth, not impede it. For employers, particularly small and medium-sized businesses, this is an area to watch. If implemented effectively, it could accelerate hiring and innovation across multiple sectors.
The Prime Minister also addressed national concerns around immigration, arguing that the UK has previously relied heavily on overseas labour at the expense of domestic workforce planning. While not signalling a major policy change, future access to migrant labour is likely to be more closely linked to skills strategy and domestic training. The REC continues to emphasise that flexibility in the labour market, including migration routes, must remain part of any effective growth strategy.
Overall, this week’s conference projected a government focused on the long term, recovering from a challenging year in office. Growth, skills, and opportunity are now the metrics by which it wants to be judged. For the recruitment industry, this presents a clear invitation to be an active partner in delivery, not just observers of policy but contributors to national renewal. The message from Labour is that responsible governance involves making careful decisions today to secure a stronger economy and workforce for tomorrow. We hope this focus is reflected in policy and will continue to press the Government to consider the practical realities for businesses and what is truly needed to support growth and hiring.
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