REC Submission to Autumn Budget 2024

On 30 October, the Chancellor, the Rt Hon Rachel Reeves MP, will set out the much-anticipated first budget of the new Labour era. While it has been well signposted that difficult decisions will need to be taken in light of the limited financial room for manoeuvre, we know that a renewed sense of optimism is needed to breathe some life back into the UK economy and, in turn, the labour market.  

To ensure that our members’ voice is heard, the REC has this week written to the Chancellor to share our insight on the labour market and the latest market analysis. We have taken the opportunity to build on our Dynamic Labour Markets for Growth manifesto, and issue a timely reminder to the Chancellor of the issues which will unlock the business confidence that REC members are telling us is currently holding back demand in the jobs market.  

Building a clearer understanding of the modern labour market and its challenges, and how to work with business to address these.  

We are calling upon the government to address the challenge of creating growth by building an Industrial Strategy which is informed by a workforce plan developed with, and informed by, insight and data from labour market experts. 

Incentivising investment in the skills needed to build a UK workforce aligned to the jobs of the future. 

The government must deliver a skills and training strategy which will equip both our current and future workforce with the skills needed for the jobs of the future, whether resulting from advances in technology or the impact of climate change and the transition to net zero. This includes ensuring the long-overdue reforms to the Apprenticeship Levy allow members to better utilise the millions of pounds paid into the levy pot which go to waste every year. 

Boosting workforce productivity and reducing labour market inactivity in the short-term by reforming access to training, increasing childcare accessibility and reviewing public sector staffing models. 

Without addressing obstacles to productivity and barriers to accessing the workplace, particularly childcare, healthcare and transport infrastructure, any workforce strategy will fall short and limit opportunities for UK workers.  

Fixing supply challenges in the NHS must sit at the heart of any solution. We have issued a call to urgently reform NHS procurement frameworks to create a sustainable supply chain which delivers positive outcomes for the NHS, patients and our members, and will continue to engage with the government on this topic to represent the consistent feedback we get from members on this issue. 

Regulating for a sustainable and dynamic labour market to safeguard workers’ rights while supporting flexible work. 

Labour’s plan to Make Work Pay promises to be a significant reform of some of the key regulations impacting our members. Our submission, supported by direct engagement with government on behalf of the industry, is focused on ensuring that headline reforms do not ignore the importance of temporary and flexible working models to our fragile labour market – as highlighted by our Voice of the Worker campaign. Regulation and enforcement policy must create a level playing field in the market, rewarding compliant operators while tackling exploitation.  

You can read our full submission here.  Our dialogue with the Government is, however, an ongoing effort and we will be meeting with the various departments over the coming months to keep pressing home these key themes.  We would welcome input from members to support in those discussions, particularly real-life stories which can really help demonstrate these points to politicians.