BUDGET – REC
Good Budget for jobs, great news for recruiters who play by the rules - REC
Commenting on the announcements on growth and jobs by the Chancellor in today’s Budget the Recruitment and Employment Confederation (REC) director of policy Tom Hadley says:
“The Chancellor had to deliver on jobs and growth and with measures that cut the cost of hiring, reward workers with more take-home pay and reduce the corporate tax burden on businesses George Osborne has made some steps in the right direction. These measures are very welcome and emphasise that work pays and Britain is open for business.
“Investment in infrastructure to kick start construction and drive growth is good news as was the promise to deliver on Lord Heseltine’s ideas for helping SMEs through increased regional funding and an extension of the Funding for Lending scheme. Sadly, there was no sign that the government plans to do anything to help small businesses access public sector contracts.
“The real question is whether we have sufficient skilled workers to complete new infrastructure projects and the potential vacancies they will generate. Recruiters are already reporting candidate shortages in engineering and IT. The Chancellor did not have any new announcements to make about training and apprenticeships and could find his growth plans in creative, low-carbon and technology sectors thwarted by a lack of skilled workers. An investment in those who currently don’t have the right skills for available jobs, be they young or old, needs urgent action not just lip service.”
On specific announcements about more robust enforcement of tax avoidance regulations from HMRC and confirmation that amendments to IR35 provisions will be taken forward Tom Hadley added:
“There was heartening news for recruiters as the government has responded to our calls to shine a light on bad practice. For too long recruiters who abide by the rules have been disadvantaged by less scrupulous businesses who skirt round the law. We applaud the announcement of a crackdown on tax avoidance by offshore intermediaries and will work shoulder to shoulder with the government to level the playing field and support those in our industry who do the right thing.
“We will continue to work with the government to ensure amendments to IR35 are as clear as possible.”