Government urged to focus on boosting jobs and skills, not raising taxes

With the Autumn Budget just a month away, the government is being urged to focus on supporting the labour market, rather than raising taxes.

The Association of Professional Staffing Companies (APSCo UK) has submitted a series of targeted recommendations to the government ahead of November’s Budget.

APSCo Budget recommendations

The APSCo’s recommendations are designed to drive economic growth in ways that positively impact people’s everyday lives.

The trade body has suggested the following:

Tax and regulatory reform

Not to increase employer taxation, warning that further rises in National Insurance Contributions, Corporation Tax and the Growth and Skills Levy could stifle job creation and investment.

Instead, it advocates for reforms to IR35 and employment status definitions to support flexible working models and reduce administrative burdens.

Umbrella market regulation

The trade body has also called for a licensing regime for umbrella companies, improved data sharing with HMRC, and increased funding for regulators to tackle non-compliance and protect the integrity of the labour supply chain.

Support for NHS workforce innovation

Funding for a digital work passport, standardised compliance across NHS frameworks, and recognition of the vital role temporary and contract workers play in delivering healthcare transformation.

Investment in skills and talent access

APSCo has endorsed full allocation of Growth and Skills Levy and Immigration Skills Charge funds into domestic training initiatives, alongside reforms to visa routes to attract highly skilled professionals in sectors such as IT, engineering, and life sciences.

Employment rights reform

While supporting the creation of the Fair Work Agency, APSCo warns against overregulation and calls for sufficient funding for Employment Tribunals and ACAS to avoid delays and maintain labour market confidence.

Tania Bowers, Global Public Policy Director at APSCo, commented, “What truly matters in this Budget is delivering growth that people can experience in their everyday lives. Fiscal conditions directly impact the cashflow businesses need to hire staff and build a skilled workforce.

“Our research and member sentiment show cautious optimism, but confidence remains fragile. That’s why we are calling on HM Treasury to avoid further tax burdens on employers and instead focus on regulatory and tax reforms that support flexibility and productivity.”

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