“The immediate priority for the new Prime Minister is to take action to support individuals and businesses through the cost-of-living crisis, especially as it spikes during the winter.  Effective and targeted support will be required to help workers and companies impacted most severely by spiralling energy costs. 

“However, it’s crucial that the Government also acts to increase business productivity and growth by making key reforms to skills and other areas of policy that can boost employers’ investment in training, management capability and technology.  

“The new Government should strongly resist any temptation to water down employment rights and protections for workers. The UK is already one of the most lightly regulated labour markets among developed economies, with above-average employment levels and a high proportion of workers in permanent employment.  Business surveys consistently show that the UK’s SMEs don’t see employment regulation as a significant impediment to growth, which strongly suggests that any push to deregulate in this area would be an unnecessary and potentially damaging distraction.  

“Instead, the Government should focus on delivering on previous commitments to reform labour market enforcement and support the creation of more flexible workplaces. These changes to policy can help raise employment standards overall and create more better-quality jobs.”