Budget fails to deliver bold action on job creation – REC

Responding to today’s Budget, Maxine Bligh, Interim Chief Executive at the Recruitment and Employment Confederation (REC), said:

“The Chancellor has failed to hit the bullseye on business confidence to hire today.

“Today’s Budget will leave jobseekers waiting far longer than necessary for a strong jobs recovery because the government is still not creating the right conditions for firms to grow, hire and invest with greater confidence.

“There is still too much regulation landing on employers’ desks because of employment reforms that place process ahead of practical outcomes. The government should have exempted agencies from guaranteed hours rules to help young people keep entering the labour market through temporary work. Critically for employment costs, the Budget does not provide a broad phased restoration of the employer National Insurance threshold or a cut to National Insurance. Employers are also still waiting for greater flexibility within the Growth and Skills Levy and increased support for shorter, targeted training programmes. Together, those measures would have done far more to encourage hiring and investment.”

Maxine Bligh added:

“The small business rates relief for retail, hospitality and leisure will help in the short-term. Our latest Report on Jobs shows retail recruitment has been under pressure for some time, with both permanent and temporary retail vacancies last in growth territory in July 2023. In hospitality, permanent vacancies last increased in August 2024 and temporary vacancies in December 2024.

“Yet the rises in minimum wage rates announced today are an additional pressure on embattled employers already facing daily pressures from geopolitical uncertainty and escalating costs of doing business. Government must not allow the National Minimum Wage to become a disincentive to hire younger jobseekers.

“There is still too much delay in taking the big decisions that could help get the jobs market firing.”