Fair work, skills and productivity within the devolved nations
In the CIPD’s engagement with devolved governments, our key priority areas remain fair work, skills and productivity. The devolved governments of Wales and Scotland have put fair work at the heart of their policies, but our discussions find that gaps remain in employer knowledge and the steps they can make to improve work and working lives.
Within the two nations, it is in the private sector, especially in SMEs, where the biggest gains in improving employer knowledge of how they can improve work and working lives can be found. If attempts to improve employer understanding of fair work, through showing the persuasive evidence around retention or recruitment, are to be realised then providing clear accessible advice needs to be high on the agenda.
Boosting work-based learning, in particular apprenticeship funding, can go some way to closing skills gaps and addressing skills mismatches. Reforms to the skills delivery landscape in Wales (through the creation of the Commission for Tertiary Education and Research, known as Medr) and Scotland (through looming changes to Skills Development Scotland and the Scottish Funding Council) are a big part of the CIPD’s focus within our discussions.
The links between productivity and good people management are well understood through recent research, but significant gaps remain a real challenge. More government support in both devolved nations could be needed to improve the quality of management, especially for some of the smallest of businesses.
Change in Westminster and changes in Wales and Scotland
While voters in Scotland and Wales will be choosing who they want to run important services such as health and education, last year's change of government at Westminster will inevitably also have an impact on how people in the nations vote.
For the first time in nearly 20 years both the Welsh and Scottish Labour parties will need to define themselves as much against their own government in Westminster as against their rival parties. Meanwhile, Reform leader Nigel Farage will be looking to build on recent successes by breaking through in both parliaments, with some polls even suggesting that Reform could oust Labour as the biggest party in the Senedd/Welsh Parliament.
A three-way fight for Wales
The Senedd has significantly increased its powers and responsibilities since the advent of devolution. This means more Senedd members are needed to effectively implement and scrutinise devolved policy, leading to the Senedd growing from 60 to 96 members who will be elected by a new, more proportional voting system in 2026.
Although Welsh Labour has dominated Welsh politics for decades, 2024 saw the leadership of the party change hands twice and First Minister Eluned Morgan now faces the challenge of avoiding taking the flack for decisions made by Labour in Westminster, with the impact of benefits cuts and questions over further devolution of powers standing out as particular flashpoints.
Polls currently suggest a close three-way fight between Welsh Labour, Plaid Cymru and an insurgent Reform for first place. Though a Labour-Plaid coalition is still the most likely outcome, the challenges that Welsh Labour has had around getting a budget through the Senedd suggests the post-election coalition negotiations could be challenging, particularly around agreeing who gets to be First Minister.
Change or continuity in Scotland?
The Scottish National Party (SNP) in Scotland has faced a tumultuous time following the departure of their former leader Nicola Sturgeon, a dramatic loss of seats at the General Election and, like Labour in Wales, an unanticipated change of First Minister. Although Scottish Labour would previously have been quietly confident of a breakthrough at next year's Scottish Parliamentary elections, recent polls suggest a decline in support.
Although the SNP is the current favourite to form a government, a second independence referendum is unlikely to happen anytime soon. Meanwhile, the Scottish Conservatives, also with a new leader, are attempting to carve out a ‘common sense’ identity, with policy shifts aimed at countering the threat of a rising Reform. It is likely Reform will win seats in Holyrood, and it will be fascinating to see who any Reform MSPs would back for First Minister.
Discussions around new employment rights in Northern Ireland
Although there are no elections scheduled in Northern Ireland until 2027, activity in Northern Ireland should still be of interest to CIPD members, as the Northern Ireland Executive is currently working on the 'Good Jobs' Employment Rights Bill as well as gender, ethnicity and disability pay gap regulations.
The CIPD fed into the NI Executive's consultation on the new employment rights bill last year and will continue working with ministers and civil servants as plans are developed. The CIPD will continue to engage with the Northern Ireland Executive more broadly – as well as the governments in Edinburgh and Cardiff Bay - ahead of upcoming legislative changes and elections.
