REC response to the Budget

Filed under Press release

Wednesday, 11 March 2020


In response to today's Budget, REC Director of Policy and Campaigns Tom Hadley said:


"Today’s Budget gives a much-needed boost to businesses that are facing unprecedented pressure over Coronavirus. Measures aimed at small and medium businesses like 100% relief on business rates and refunding the Statutory Sick Pay bill for up to 14 days will help businesses address cashflow problems they are likely to encounter in the coming months. However, there appears to be little support for business of over 250 employees – this is likely to include temporary workers on the books of recruitment agencies.


“As the Chancellor said, the measures that were announced are exceptional and temporary. But businesses are facing long-term challenges which Coronavirus have made even more acute. It’s disappointing to see the government is ploughing ahead with ill-conceived IR35 tax changes. Businesses don’t have time to prepare and now is completely the wrong time for a huge regulatory shake-up. Today was a missed opportunity for the government to delay IR35 and give business time and space to focus on protecting their workforce during the current disruption.


“Before Coronavirus, industries like healthcare, hospitality and logistics were facing damaging skills shortages. Shortages among medical staff will test the NHS as the country battles COVID-19. Businesses need a long-term plan that focuses on building skills. The government should transform the Apprenticeship Levy so it can support training for temporary workers our economy relies on. Businesses need a negotiated exit from the EU and an immigration policy that addresses skills shortages at all pay and skill levels.” 


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