Chancellor should prioritise skills in Spring Budget

There are calls for the Chancellor to focus on three main areas during the Spring Budget in order to strengthen the labour market.

According to global talent solutions provider, WilsonHCG, the areas that need to be focused on are:

• increased support for the flexible workforce to boost access to skills
• better investment in skills development to meet the real needs of UK employers
• creating a reform of the Apprenticeship Levy to prevent funds from going unused

Craig Sweeney, EVP of Global Strategic Talent Solutions at WilsonHCG, said, “The upcoming Spring Budget presents the ideal opportunity to boost and adapt labour market policies so they are more closely aligned to the needs of the modern workforce.

“It’s clear that the Apprenticeship Levy requires major reform; fewer 19-25-year-olds are choosing to work as apprentices and providing a greater degree of flexibility, as well as broadening access to funding, would help to attract a wider range of individuals to consider this employment route.”

Craig added, “In a similar vein, we would also like to see better support for the flexible workforce as more professionals take on gig-work and ‘side hustles’ to not only tackle the cost-of-living crisis but also adapt to the new world of work.

“Up to now, the core focus of the Government has been on how to tax flexible workers fairly, rather than how they could offer better support to boost the flexible labour market.

“Many industries that rely on this segment of the workforce have faced the biggest economic challenges – like hospitality – and offering tax breaks, specifically around VAT, would free up investment that could be redirected into the workforce, particularly with national living wage changes on the horizon.”

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