Political uncertainty leaves British businesses only planning year-to-year

cityam02-04 14:00

Political shifts and ongoing regulatory uncertainty are disrupting businesses Businesses are seeing political change and regulatory uncertainty as a barrier to long-term workforce planning, making it ...

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Nearly 80 per cent of employers find themselves unable to look beyond a 12-month horizon, according to a survey of nearly 700 employers by law firm Lewis Silkin. Lucy Lewis, partner and chair at Lewis Silkin, said: “Economic pressures, and political and regulatory change narrow the planning window even further… reactive tactics which mean that transformation programmes or workforce redesign get sidelined.”Preparing for and complying with the Employment Rights Bill is a top challenge for 25 per cent of UK organisations, as the overhaul in workers’ rights is bound to cost businesses.","collect":0,"end_time":0,"defaultTopTitle":"cityam.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4211":"区域性银行","NIC":"Nicolet Bankshares Inc."},"translate_title":"政治不确定性让英国企业只能逐年规划","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NIC":1},"content_text":"Political shifts and ongoing regulatory uncertainty are disrupting businesses Businesses are seeing political change and regulatory uncertainty as a barrier to long-term workforce planning, making it harder for leaders to implement effective workforce strategies. Nearly 80 per cent of employers find themselves unable to look beyond a 12-month horizon, according to a survey of nearly 700 employers by law firm Lewis Silkin. Lucy Lewis, partner and chair at Lewis Silkin, said: “Economic pressures, and political and regulatory change narrow the planning window even further… reactive tactics which mean that transformation programmes or workforce redesign get sidelined.”Preparing for and complying with the Employment Rights Bill is a top challenge for 25 per cent of UK organisations, as the overhaul in workers’ rights is bound to cost businesses.  \n\nThe controversial Bill was finally green-lit to become an Act in December, following months of ping-ponging in the House of Lords over ‘day one’ rights. \n\n\n\n\n\n\nNews Updates\nStay ahead with our three daily briefings delivering all the key market moves, top business and political stories, and incisive analysis straight to your inbox.\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nWhile the Act is absorbed into law, Tarun Tawakley, partner at Lewis Silkin, stated: “Over the next 12–24 months, expect cautious hiring, legally anchored policy-setting and a premium on disciplined execution.”Along with these costs, rising employee costs have also become a primary driver of short-term, reactive decision-making for British businesses. The increases in employer national insurance contributions (NIC) and a 4.1 per cent rise in the national living wage have created hiring headwinds. For smaller businesses, the pressures they feel are disproportionately impacted by taxation, employer contributions, and the cumulative administrative burden of compliance.\n\nAI effect on workplace culture As the report noted that the majority of these businesses expect their organisations to invest more in technology than people over the next year, the survey noted the anticipated effect this will have on culture. Almost half (49 per cent) of organisations expect cultural resistance, such as fear of job losses, or mistrust of AI outputs, to slow down the adoption of new technologies. The challenge of upskilling “is becoming more acute as employment law rights continue to expand and employees’ awareness of those rights grows, placing greater importance on effective training, coaching and people management,” explained Lisa Farthing, head of worksphere and HR consultancy at Lewis Silkin.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.36.2","shortVersion":"4.36.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2608332848","isCrawlerRequest":true}