Budget predictions, will the chancellor help the recruitment industry?
There has been so much speculation over recent weeks around today’s budget and how it will or will not affect the UK economic forecast. I almost want to duck, the last time we had the mini-budget back in September, we had two resignations, the then Prime Minister and the Chancellor and the financial markets went into freefall.
All of the Business Network Groups have been lobbying the Government and the message is loud and clear.
The British Chamber of Commerce has clear headlines they expect the government to address:
- Provide support to businesses to become greener and more energy efficient.
- Boost start-ups through business rate reforms
- Address the labour shortages by making childcare more affordable.
- Setting a framework for solvency ii to help direct funds to where they can be of most benefit
The FSB has also highlighted Childcare with a very specific request to increase the allowance to £3000, to support single parents and parents who are struggling to get back to work. The FSB seem to be the only group that is challenging the government to support those on long-term sick to get back into the workplace, with a Kickstart style job scheme. The current number out of work on long-term sickness are 2.5m and the current number increased from 2020 by 363,000. These are having an enormous impact on employers and recruiters filling vacancies.
And the IOD has also focused its message on the skills shortages using tax credits as a way for firms to invest in skills shortages. The IOD is also calling for the government to tackle the high costs of childcare, not only to support parents back into work but also to try and support parents to increase the hours they work.
Although this will help support parents, the cost is not always the reason parents choose to have one parent home raising the children, and additional financial support won’t change parents who believe in children being raised by their parents. Over half of the women who work at Axiom have children and they have all opted to remain on part-time hours, and their reasons are primarily to be there for their children.
The Government needs to listen closely to the needs of businesses and the struggle companies are having in securing new talent.