Labour listens to REC in draft policy paper

Following their National Policy Forum (NPF) consultation process, Labour has now drafted a policy paper that will likely form the basis of their 2024 general election manifesto. Labour's draft paper contains a whole raft of policy proposals but it's great to see so many REC policy asks, both from our NPF submissions and from our Overcoming Shortages report included.  

Set out below are some of Labour's key proposals that will affect our sector, and some initial thoughts on what this could mean. This is just an initial draft at this stage but does give a good indication of the positions Labour is likely to adopt. Many of the proposals still need more detail, but that provides another opportunity for the REC to engage with the relevant teams to try to ensure those details are in our members' best interests.  

Industrial Strategy 

Labour's draft paper sets out their intention to introduce a long overdue Industrial Strategy, a key REC ask. Labour's set out 4 central goals for this strategy: delivering clean power by 2030, caring for the future, harnessing data for the public good and building a resilient economy. One of the REC's key asks in our Overcoming Shortages report was for the creation of a forum or council where policymakers, businesses, and industry experts could work together on major issues like workforce planning, a key aspect of any Industrial Strategy. That's why it's great to see proposals to establish a new Industrial Strategy Council, with both government and industry and union representation.  

Tax avoidance 

Labour also promises to clamp down on tax avoidance. There is no detail around the specifics of this in the draft, but it is important that Labour use this as an opportunity to clamp down on umbrella companies promoting tax avoidance and tax evasion schemes. This is also something the REC has repeatedly called for across different submissions, reports, and most recently in meetings with senior Labour officials.  

Public Procurement 

Labour's proposals set out their intention to use government procurement to support local businesses, cutting red tape and streamlining the bidding process to level the playing field for small businesses. Earlier this year, the REC wrote to the Cabinet Office to suggest they adopt smaller procurement lots to create a more competitive and sustainable market for procurement. We also included this ask in our NPF submission on public procurement, so Labour's intention to streamline the bidding process could well be a step in the right direction to achieve this.  

Worker Status 

Labour has long advocated for the introduction of a single status of "worker" rather than the current distinction between employees and temporary workers, and this remains part of their draft paper. However, Labour have listened to REC when it comes to the distinction between temps and gig workers. They have plans to consult on a framework to distinguish between workers and the genuinely self-employed. Likewise, Labour have promised to end "one-sided flexibility", this suggests a distinction between zero-hours contracts and the two-sided flexibility that temps on a contract for services have. This is a distinction that REC stressed in a recent meeting with Angela Rayner's team, and it is great to see Labour recognising these important differences.  

Equality, Diversity & Inclusion (EDI) in the workplace 

There are also proposals in the draft paper around EDI at work. These include the requirement for large companies to publish action plans on the gender pay gap and plans around supporting workers experiencing menopausal symptoms. Labour also plans to introduce disability and ethnicity pay gap reporting for larger employees - two things that REC called for in our Overcoming Shortages report.  

Apprenticeship Levy Reform 

In the draft paper, Labour promise to reform the Conservatives’ apprenticeships levy into a ‘growth and skills levy’. This has been a core REC ask since the apprenticeship levy was first introduced in 2017 and it is great to see Labour committing to necessary reform of the system. This will make the levy more accessible to all businesses across the UK and it is great to see Labour's commitment to this. The REC will continue to engage with Labour's Education team to ensure that the growth and skills levy works for everyone in the labour market, and offers more modular, short-term training courses. As we highlighted in last year's shortages report, employers have to invest in more training for their people. We know it's critical for growth, but we need the wider policy landscape to enable employers to do that effectively. This is an opportunity to achieve that.  

Review Immigration 

Labour also talks about immigration reform. Reforming the current points-based system is a key part of this to create a system that allows immigration to properly address vacancies in the UK. Labour also mentions reforming the Migration Advisory Committee, allowing them to review shortages more often. A more regular review of the Shortage Occupation List is another key REC ask. As set out in our Manifesto for Growth, part of a responsive and responsible labour market has to be an immigration system that meets business needs to facilitate growth, innovation and encourages increased productivity.  

More Teachers and nurses  

Recruiting thousands of new teachers and nurses is also part of Labour's draft proposal. We know that we've got severe shortages in both the education and health sector, so this is good. However, we need detail on how we actually get those people into those roles. Having targets is one thing, but we need a plan for achieving them. This is another area where REC can offer value and expertise, and we'll be continuing to engage with the relevant Shadow teams on this.  

This is not an exhaustive or definitive list of Labour's manifesto commitments, but it does give us a clear indication of what Labour's priorities are for employment. It is also great to see how many of these proposals have been influenced by REC, through our conversations with Labour and our submissions to their NPF consultation. There is still plenty more to be done to fine tune some of the detail, but this draft shows a huge shift in the right direction.