• Swindon & Wiltshire Economy
• Monday July 13 2026

HR Dept urges incoming Prime Minister to support SMEs

Swindon-based HR Dept is calling on incoming Prime Minister, Andy Burnham, to consider the challenges currently facing small and medium-sized enterprises in the wake of sweeping employment law reforms and rising employment costs.

SMEs across the UK, including Wiltshire, are navigating a changing regulatory landscape following a succession of policy updates under the Labour government. The introduction of the Employment Rights Act, hikes to National Insurance contributions, and increases to the National Minimum Wage have combined with the rapid acceleration of AI to create a demanding environment for smaller businesses.

While these policy shifts are aimed at increasing security and pay for employees, the consequence has been that many smaller employers are finding it difficult to take on new staff. In many cases, companies are reducing their headcount to make ends meet.

Peter Jones, managing director of HR Dept Swindon, North Wiltshire and East Cotswolds, suggested that targeted government support to reduce employment costs is now needed to help businesses grow – which was a goal outlined in Labour’s manifesto – and to encourage recruitment, particularly of young people.

“SMEs are the backbone of the British economy, but many are finding conditions incredibly tough right now. We see this first-hand among our clients,” said Peter. “Changes in the law, alongside rising tax and wage burdens, has overburdened many small businesses. We hope the new Prime Minister’s administration will look at practical ways to help reduce these mounting hiring costs.”

The HR Dept is calling on Downing Street to consider measures such as targeted employment incentives to lower the entry barriers for businesses looking to take on younger workers.

“We are seeing businesses pause their growth plans or look to automation because the cost of employment has risen exponentially,” Peter added.

“By helping to ease hiring costs, the government can give SMEs the confidence they need to continue investing in the next generation of talent.”