APSCo FD Forum Highlights: An analysis into the Labour Government’s first budget and the impact on the recruitment sector
It was great to see so many APSCo members attend our FD Forum last week for recruitment insights and an economic analysis following the Labour Government's first Budget announcement.
At the event we heard from expert speakers including Mike Hodges, Tax Partner at Saffery and William Hobbs, Head of Multi-Asset Wealth at Barclays. We thought we'd share some of the key insights and challenges from the Budget highlighted in the forum.
Mike Hodges, Tax Partner at Saffery gave us immediate insight into the Labour Government’s first budget:
Mike explored how the latest fiscal policies could influence hiring trends, wage expectations, and overall market dynamics. Key takeaways included:
Rise in NICs - In the Budget announced, Labour confirmed that NICs are set to rise - there was concern among members about the impact this may have on businesses.
Umbrella PAYE responsibility - The government is planning to bring forward legislation to change who has responsibility for PAYE where an umbrella company is used. This means the responsibility will now be with the recruitment organisation that supplies the worker to the end client. Businesses and recruitment organisations should review labour supply arrangements with umbrella companies and increase safeguards when engaging with these companies.
Some wondered if the change in PAYE legislation would push their clients to recruit overseas, and were thinking about how it will impact supply chains. Mike mentioned HMRC note how important industry representative bodies like APSCo are to their policy work.
NHS and Public Sector - With more funding going into the NHS, this may provide more opportunities for recruitment members working in the public sector.
William Hobbs, Head of Multi-Asset Wealth, Barclays UK Wealth Management discussed the economic outlook ahead of the U.S presidential elections.
Productivity and flexibility are key growth drivers for the economy - As Finance Directors and CFOs look ahead to the U.S. Presidential elections, things are looking optimistic around the economy and capital markets. William explained that whatever the outcome of the U.S Presidential elections, it is unlikely to have a direct impact on the rate of UK economic growth. growth is still driven by productivity and how flexible your labour market is.
Digital transformation - Challenges of the last decade include a relatively dry period of productivity since the ICT revolution, and in recent years events such as the pandemic have had a major impact on the economy. The good news is that things are looking up in terms of productivity, thanks to the latest batch of technologies including machine learning. There is a real chance here to accelerate productivity and drive economic growth, but what do we do with these technologies and how do we take it forward was a question raised.
Environmental responsibility - There was discussion around a very important question raised by a member in the audience, ‘can the world continue to grow without it costing the environment?’. William’s answer was yes, within reason. It is not necessary for growth to be resource consuming. For example, there were game-changing innovations just from the use of an excel spreadsheet, which allowed people to be more productive and created less waste for the environment. William concludes by saying, growth is all about ideas, and with that, there are no limits.
To find out more about how the Budget may impact your organisation going forward, download your free copy of the Budget 2024 report here.
To find out how to become an APSCo member and access support for your organisation please enquire here.