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REC Technology warns Government

REC Technology warns Government on key IT projects

The Treasury has announced a package of cuts amounting to 6.2 billion worth of savings from the public sector budget.

Included in these measures is a 95 million saving to be made through a reduction in IT spending, 120 million saving to be made through a civil service recruitment freeze and 1.2 billion from local government.

Commenting on the Chancellors statement on cuts, Jeff Brooks, Chair of REC Technology said:

Public sector budgets were expected to be cut regardless of who formed the government after the election. We would advise Government not to sever critical IT investment projects which will generate even greater costs for the country in the long run.

The worry is that local authorities, who also have to find their own savings, will contribute to the cuts package announced today by scrapping key IT improvement projects.

Brooks added: IT recruiters will work with IT professionals who are laid off as a result of these cuts to help find them work elsewhere."

Queens Speech REC Response

The Queen's Speech has today outlined the priorities for the new Coalition Government over the next year.

Commenting on the speech, Kevin Green, Chief Executive of the REC said:

"Recruiters will be delighted that the effect of the rise in National Insurance Contributions will be mitigated. This tax on jobs was opposed by the REC and all business bodies as it would have added cost onto new jobs.

We are also pleased to see that reform of the benefits system is at the heart of this agenda. For too long, those on benefits have been prevented from working on short temporary assignments because the benefits system is too rigid. Temporary jobs are an ideal route out of welfare and into work. The REC will work with Department for Work and Pensions to make sure that this is a reality on the ground."

On some of the other areas in the speech which are of direct interest to recruiters, Kevin Green concludes:

"The Pensions Bill offers the opportunity to revisit the new provisions on automatic enrolment. These were never suitable for the temporary jobs market and we will be urging Ministers to reconsider the impact of these reforms on short assignments.

"The REC will remain alert to how the cuts in the public sector affect those supply that market. We are urging the public sector to look at flexible staffing as a route to better manage the delivery of public services."

The REC will also track how the reform to education and health services will affect the supply of staff into these bodies and the implications for recruiters operating in these sectors.


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