Time for The Chancellor to Bolster UK Businesses and Jobs

It’s time for the Chancellor to bolster UK businesses and jobs says James Hall, EMBS’s Managing Director. Here, he looks ahead to the Chancellor’s Spring Statement, focusing on its potential impact on the UK job market and the businesses that drive it.

With the Chancellor’s Spring Statement on March 26th looming, my focus, as a recruitment specialist, is squarely on how the Government will support UK businesses and crucially, create and sustain jobs amidst challenging economic conditions.

While major policy announcements are anticipated to be reserved for the annual Budget, the upcoming Statement and accompanying economic forecast from the Office for Budget Responsibility (OBR) will provide critical insights into the Government’s strategy, particularly concerning the health of the labour market.

Navigating Economic Headwinds to Drive UK Growth

The OBR’s forecast will shed light on the UK’s economic performance, including growth projections, cost of living estimates and the Government’s adherence to fiscal rules. With current growth described as “weak” and inflation exceeding the Bank of England’s target, the Chancellor faces the challenge of stimulating the economy while maintaining fiscal responsibility. This balancing act directly affects hiring decisions, with businesses often hesitant to expand their workforce during periods of economic uncertainty.

A Foundation for Job Creation

A key focus must be on creating an environment conducive to business growth, as this directly translates to job creation.

I hope to see the Chancellor address rising business costs and invest in infrastructure and skills, both of which are critical for a healthy recruitment landscape.

Firstly, regarding rising business costs, the anticipated increase in employer National Insurance contributions in April poses a challenge. The Government needs to explore measures to mitigate the impact on businesses, particularly SMEs, as these are often the engine of job growth. If businesses are struggling with increased costs, hiring will inevitably suffer.

Secondly, to enable businesses to thrive, we must see investment in infrastructure and skills. This directly impacts the talent pool available to employers. A skilled workforce is a magnet for businesses. In addition, investment in training and education is essential to address skills gaps and ensure a pipeline of talent.

The rumoured plans to reorganise the civil service and streamline quangos and regulators are welcome, provided they are implemented effectively. Reduced red tape and a more efficient business environment will allow businesses to focus on growth and consequently, hiring.

Creating Jobs

As a recruitment specialist, I would obviously like to see how the Spring Statement can help to create jobs, particularly by addressing workforce participation.

While welfare spending cuts are anticipated, any reforms should prioritise getting people back into work. This could include targeted training programmes, apprenticeships and incentives for employers to hire long-term unemployed individuals. These initiatives are essential for bridging skills gaps and getting people back into the workforce, thus expanding the available talent pool.

Global Economic Uncertainties

Finally, the Treasury’s acknowledgement of global economic policy and geopolitical uncertainties highlights the need for a resilient UK economy. While tariffs may not directly target the UK, I would like to see the Government work to strengthen trade relationships and diversify its export markets to mitigate these risks.

By focusing on these key areas, the Chancellor can use the Spring Statement to demonstrate the Government’s commitment to supporting UK businesses, creating jobs and navigating the current economic challenges. From a recruitment perspective, these measures are crucial for fostering a dynamic and thriving job market.