Labour's Win: A New Era for the Umbrella Company Industry?

A New Dawn: Labour Takes the Helm

Last night, the political landscape shifted dramatically with the election of a new Labour government. As the country adjusts to this change, our industry, long yearning for reform, stands poised on the precipice of a potentially transformative era.

Labour has pledged swift action, promising to introduce new legislation within 100 days. But amidst concerns from businesses, they've also emphasised a commitment to open consultation – striking a balance between "pro-worker" and "pro-business" stances.

Eradicating Rogue Operators: A Shared Goal

For years, our industry has grappled with the negative impact of rogue operators. They damage our reputation, undermine the economy, and leave workers vulnerable. Labour's pledge to tackle tax evasion, including increased funding for HMRC and new compliance officers, is a welcome step in the right direction. Ideally, a portion of this funding will target our industry specifically.

Protecting Workers: A Long-Overdue Commitment

While the previous government never delivered on its promise of a single enforcement body for worker rights, Labour has already committed to establishing one. This, along with potentially clearer regulations for determining employment status (perhaps a two-part framework), could significantly improve worker protections.

Labour's Approach: Strengthening Compliance

Labour's focus seems to align with our industry's long-held desires: eliminating unscrupulous operators and enhancing worker rights. While the Conservatives favoured due diligence for compliance, Labour may explore more impactful measures like transfer of liability or even a licensing regime.

Change is Coming: A Time for Action

With a new government firmly committed to tackling non-compliance in the umbrella company market, we stand ready to collaborate and contribute positively to Labour's upcoming "Tackling Non-Compliance in the Umbrella Company Market" consultation. We eagerly await Labour's specific proposals and believe their approach could be more effective than the Conservatives' due diligence focus. Perhaps even a licensing system will be reconsidered.

One thing is certain: change is upon us. And our industry is ready to embrace it.