Industrial Strategy measures could place greater demand on umbrella companies

The government has launched details of its Industrial Strategy – a 10-year plan to boost UK industries and increase business investment.

While the plan overall has been met with positivity, there are some concerns that further compliance changes could place greater demands on recruiters, employers and umbrella companies.

Responding to the information released in the Industrial Strategy, Shazia Imtiaz, General Counsel at the Association of Professional Staffing Companies (APSCo), said, “It is encouraging to see that the Government has listened to our calls for close collaboration with those that will be most impacted, namely recruitment businesses and employers. Throughout the strategy, there are clear plans for Skills England to work closely with industry and employer representatives, which demonstrates that they are listening to businesses.

“The focus on greater international fluidity is certainly a welcome step for staffing companies, and we are pleased to see that APSCo’s calls for professional and advisory services to be included in future trade negotiations has been heeded.

“However, it is crucial that the focus is more equally balanced on imports as well as exports. The current strategy is heavily weighted in the favour of exporting services overseas, which will boost business growth, but the ability to import skills and services is equally as important given the skills shortages currently being felt.

“While the strategy for the professional and business services sector has a clear theme of boosting the abilities of the domestic workforce, there remains a level of inflexibility that APSCo believes still needs to be addressed.

“The continuation of Level 7 apprenticeships for young people under the Growth and Skills Levy will have longer-term impacts, but we remain of the view that the diverse make-up of today’s workforce requires more flexibility around this. As such, we will continue to work with representatives to evolve these Levy funds to allow for the upskilling of mid-career lane movers, those in the temporary or contract workforce and retirement returnees.

“It is also important to note that the details in the Industrial Strategy today indicate further compliance changes are in store for the staffing supply chain. With HM Treasury already focusing on umbrella reforms, it’s perhaps no surprise to note the plans for a package of changes to money laundering regulations (MLRs).

“While this may place greater demands on recruiters, employers and umbrella companies, we welcome any steps that promote compliance and raise standards across the sector.”

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