Liberal Democrat Policies
Liberal Democrat Manifesto: For a Fair Deal
In marketing circles, there's a concept called "First Mover Advantage", where a company launches a new product first, seizing an early share of the market before competitors have got going. Whether such a thing exists in politics is up for debate, but it's the Liberal Democrats who have moved first when it comes to publishing their official 2024 election manifesto, For a Fair Deal.
Launched in North London on 10 June in a short interlude between leader Ed Davey's campaign trail adventures, the Liberal Democrat's manifesto sets out the core policies that form the basis of their vision for the UK. But what does it actually say, and what might this mean for the recruitment industry?
Key policy headlines
- Plans to review childcare provision to ensure all parents have access to childcare that is flexible, affordable and fair by reviewing the rates childcare providers receive.
- Making all maternity and paternity rights for leave and pay day one rights and introducing higher rates of pay for these.
- Replace the sanctions regime for Universal credit with an incentive-based scheme to help people into work.
- A requirement for large employers to monitor and publish data on gender, ethnicity, disability, and LGBT+ employment levels, pay gaps and progression, and publish five-year aspirational diversity targets.
For a fuller list of policies, click here.
Business and Jobs
The REC has long highlighted the need for a proper Industrial Strategy, and this is a cornerstone of the Liberal Democrat's manifesto, including the re-establishment of the Industrial Strategy Council to oversee this (something else the REC had previously called for). This also includes policies to tackle the productivity crisis by "encouraging businesses to invest in training, take up digital technologies and become more energy efficient", although the devil will be in the details of how these are implemented.
On skills, the Apprenticeship Levy is explicitly called out, with a promise to replace it with a broader, more flexible skill and training levy, although the Liberal Democrats do still aim to boost overall apprenticeship uptake by scrapping the lower apprenticeship rate of pay.
There are also a number of policies focused on modernising employment rights to reflect the gig economy: a new "dependent contractor" employment status, a higher minimum wage rate for workers on zero-hours contracts and a right to request a more stable contract after 12 months for zero-hours and agency workers. Should the Liberal Democrats overcome the polls and form part of the next government, these would be key areas where we would advocate on behalf of members to make sure these policies are implemented in a way that doesn't undermine the current temporary labour market in the UK.
The Economy
The Liberal Democrats manifesto sets out what they say is their vision for a strong and fair economy that benefits everyone in the UK, setting out an "ambitious industrial strategy" as a core tenet of this. Another key policy is a commitment to invest in green infrastructure, innovation and skills, including net-zero public transport. REC has pushed for investment in green skills and our report, Defining Green jobs, sets out our vision for some of this. In our manifesto we ask for a Green Skills tax credit for employers so we will look for some detail on that if the Liberal Democrats elaborate on how they will achieve these plans.
The manifesto also highlights the need for HMRC to have proper resources to tackle tax avoidance and evasion. However, no mention is made of umbrella companies and the role they play in perpetuating schemes of this nature, and the need for regulation in this part of the supply chain to minimise this non-compliance. IR35 does come up on the agenda though, with plans to review the current off-payroll rules to ensure "fair treatment" for the self-employed.
Under Liberal Democrat plans, sick pay will be aligned to National Minimum Wage rates, and expanded to all workers with the removal of the lower earnings limit. This would increase costs for businesses, but there is also a promise to consult with small employers on how to support them with these costs. The detail of this consultation will be crucial to protect smaller businesses.
Health and Social care
In his speech launching the document, Ed Davey called this "a manifesto to save the NHS", and the headline policy was a right to see a GP within seven days. This increase in service is to be achieved predominantly by increasing the number of full-time equivalent GPs by 8000 through improved recruitment and retention of staff.
The increase in staff numbers will be paired with a "reduction in top-down bureaucracy", plans to "harness the benefits of new technology" and modernising NHS systems with the Liberal Democrats aiming to improve overall efficiency. At the REC, we know reducing waiting lists is crucial to helping people who are long-term sick return to work, and potential improvements in efficiency will contribute towards this.
However they make reference to "the false economy of spending money on agency workers" and encourage the use of "flexible staff banks”. This demonstrates a lack of understanding of the true issues with staffing procurement in the NHS. REC data shows that in many cases bank staff costs more per assignment than agency spend, and simply building a narrative against agency spend won't see overall NHS staffing costs reduced.
Across social care, the manifesto aims to "introduce high-quality care for anyone who needs it". This includes plans by the party for improving staffing in the sector by introducing a "carer's minimum wage", creating clearer pathways into the sector and introducing a more collaborative staffing approach with the NHS. The REC is concerned that raising staff costs could cause trouble for smaller agencies, who will have to carry the increase upfront but the Liberal Democrat's manifesto does also contain a pledge to "tackle the late payment crisis by requiring all government agencies and contractors and companies with more than 250 employees to sign up to the prompt payment code". If this is properly implemented it could address some of these concerns for smaller businesses.
On other social care issues, any policies around the use of agency workers in social care are conspicuous in their absence from the manifesto.
Immigration
The Liberal Democrats are aiming to review the immigration system to introduce a more flexible merit-based system over the Conservative's "arbitrary" salary threshold as they put it. REC has previously highlighted the need for a more responsive immigration system to address shortages in the UK labour market. The recent Conservative Government bans on workers bringing partners and children will also be reversed under Liberal Democrat proposals.
The Liberal Democrats will also allow asylum seekers to work if they have been waiting for a decision for more than three months. Letting these people into the labour market makes sense in the face of skills shortages and the REC has previously suggested a similar proposal.
Transport and Infrastructure
On transport, the Liberal Democrats set out their intention to improve the rail infrastructure by electrifying more lines and re-opening smaller stations. Likewise, they set out plans to "boost bus services" by granting more power to local authorities to decide where need is best served locally. Improvements in infrastructure form a key REC ask, as improvements to public transport will improve access to work.
Young people also stand to benefit under the Liberal Democrat's proposals, with half-fares on buses, trams and trains for 18-year-olds, and a new "Young person's bus card", similar to the existing railcard for 19–25-year-olds in their proposals.
As with any manifesto, the promises made by the Liberal Democrats are broad and perhaps idealistic. If they get into power the real challenge will be in how these are implemented on a practical and workable level. In this eventuality, REC would be fully engaged with the party to ensure the changes set out above, particularly those which impact flexibility and employment rights, are introduced in a way that is fair, practical and realistic for the UK and doesn't limit the dynamism for the temporary agency market.