Budget fails to deliver on stability and confidence

The Chancellor’s Autumn Budget has been criticised for putting more regulatory burdens on employers and not providing the stability and confidence so urgently needed by UK businesses.

The Association of Professional Staffing Companies (APSCo)

makes the point that recruitment and workforce solution firms were already under strain from:

• Flat economic conditions
• Cost-of-living pressures
• The Employment Rights Bill implementation

Now, they face rising costs and added complexity.

Very little support to boost business

Commenting on the Autumn Budget, Samantha Hurley, Managing Director at APSCo UK, said, “The one thing the UK economy needed from this Budget was stability and confidence-boosting measures.

“Unfortunately, before the Chancellor even spoke, markets were unsettled by leaks and speculation. While there are some positive elements, such as an extension of enterprise incentives and other tax support to “scale up businesses” these have been overshadowed by the chaotic lead-up and the disappointing detail of today’s announcements.

“Employer liabilities will increase with higher National Living Wage rates, tightened salary sacrifice rules for pension contributions that slash NIC exemptions from £60K to £2K, meaning increased NICs and rising business rates.

“At the same time, sweeping reforms in the Employment Rights Bill risk creating barriers to hiring and undermining the Government’s own ambition to reduce business administration by 25% by 2029.”

Employment Rights Bill – reform needed, but must be nuanced and necessary

Samantha added, “As we have said before, the Employment Rights Bill introduces sweeping reforms, including guaranteed hours for temporary staff and day one rights against dismissal, that go far beyond what is necessary to protect workers. Reform is needed, but it must be nuanced and necessary.

“Different workers require different safeguards, and businesses need freedom to access talent. The current approach risks shrinking the labour market and stifling job creation.

“We urge the Government to work with industry to strike the right balance, protecting workers while enabling flexibility and growth. That necessitates a focus on a pro-workforce agenda, improved trade conditions with Europe, and policies that boost jobs rather than add cost and complexity that are critical to the UK’s economic resilience.”

To find out more about contracting, please contact Sophie on 01206 591 000 or email sophie.lewis@contractoumbrella.com.