REC's response to today's reversal of the mini-budget

Neil Carberry, REC CEO said:

“In response to the original mini-Budget, we highlighted the importance of a fiscal plan the markets can believe in. Today’s announcements will hopefully calm the situation and allow space for the key debate – how to help businesses generate the sustainable growth that will keep public services funded and taxes low without overstretching the public finances.

“The most important part of generating growth is the hard work that needs to be done on issues like skills, getting more people into the labour market, and the tax system. There are no quick fixes. As we said last month, it is not enough to tear things down – we need to take time to build. Just as scrapping changes on IR35 did not solve the problem of a complex and poorly enforced system, keeping them will not make these issues go away either. We have had too many employment-related policy decisions drafted from the headline down – it is time to start working from the workplace up, in partnership with employers and employees.

“Ahead of any further interventions by the Chancellor, incentivising business to invest in skills and make it easier to recruit and retain staff should be front of mind. One simple amend would be to finally reform the failed Apprenticeship Levy. The economy has suffered but demand in the UK labour market remains strong. Policies to maintain and increase that strength should be the focus as another mechanism for calming the markets and working towards a more productive, better paid workforce.”