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- Nick Elvin
Businesses, unions and trade associations have been giving their reaction to the Government’s Autumn Statement, which Chancellor of the Exchequer George Osborne delivered in Parliament last week.
Samantha Hurley, head of external affairs and compliance at the Association of Professional Staffing Companies (APSCo) said the news that the UK is the fastest growing economy within the G7 and is experiencing an upturn in job creation bodes well for the professional recruitment sector.
She added that the Government must recognise that “corporate agility provided by professional, flexible staffing has played its part in the UK’s economic success”.
“While it was encouraging to see that the Government recognises the value of self-employment and the ‘ongoing structural change’ that is happening in the labour market, greater recognition now needs to be enshrined in policy to protect the professional contract marketplace,” she said.
The Government also announced that it will stop tax relief from being claimed on expenses when they are paid with a salary sacrifice scheme, and is proposing to review the umbrella company employment model in order to crack down on those who abuse the system.
“APSCo supports any moves to remove abuse and provide a level playing field,” Hurley added. “However, it is important that the Government does not lose sight of the fact that many of the umbrella companies operating in the professional recruitment sector are fully compliant, and provide an important link in the flexible recruitment supply chain.”
The Chancellor also announced the abolition of employers’ National Insurance contributions for apprentices under 25 years.
Simon Massey, tax partner at accountants and business advisers Menzies, said: “This is a welcome change, but we would like to see some support for the increased costs (employers) will inevitably face. Removing employers’ NI on apprentices aged under 25 will place yet another compliance burden on employers.
“Apprentices typically have low salaries, so the employers’ NI saving could easily be offset by the increased cost of administering a more complicated payroll under HMRC’s Real Time Information system.
“A more helpful measure would have been the merging of income tax and NI that was promised four years ago.”
IPSE, the Association of Independent Professionals and the Self Employed, welcomed the announcement of a review of the business rates system.
Andy Chamberlain, senior public affairs manager said: “The pro-business approach in the Chancellor’s Autumn Statement is good news for small businesses across the country. We look forward to the planned restructure of business rates and we recommend that community workspaces, which provide independent professionals with a place to work and collaborate with one another, benefit from a rates cut.
“Today’s announcements such as the continued freeze on fuel duty will help to support the UK’s microbusinesses. However, it is disappointing that in our 21st Century digital economy there was little on improving our digital infrastructure, such as addressing the problem of poor broadband in rural areas.”
Len McCluskey, general secretary of the Unite union, was highly critical of the statement, saying: “The vast majority of people listening to George Osborne talking about an economic recovery will think it’s a figment of his imagination.
“People across the nation are crying out for action on wages, for security at work and the ability to put an affordable roof above their head. There was nothing in this autumn statement to offer any of this.”
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