Following news last week that the UK entered into a technical recession, the Association of Professional Staffing Companies (APSCo) is urging the government to adopt proactive pro-growth policies to stimulate the economy. 

Data from the Officer for National Statistics showed UK real gross domestic product (GDP) is estimated to have fallen by 0.3% in Quarter 4 (Oct to Dec) 2023. This follows an unrevised estimated fall of 0.1% in the previous quarter.

Across the third quarter (July to Sept) and fourth quarter of 2023, the ONS estimates that the UK economy contracted by a cumulative 0.5%. Compared with the same quarter a year ago, real GDP is estimated to have fallen by 0.2%. The concept of a ‘technical’ recession includes two or more consecutive quarters of contracting output.

Tania Bowers, APSCo global public policy director, said, “As the UK grapples with economic challenges, we must adopt proactive strategies to reignite growth and create opportunities for businesses and workers alike. By implementing targeted pro-growth, we can address critical issues such as skills shortages, regulatory ambiguity, and unfair labour practices, thereby laying the foundation for a more resilient and competitive economy.”

In response to the economic challenges facing the UK and ahead of the upcoming spring budget on 6 March, APSCo proposed a set of policies to address key issues hindering growth and employment opportunities. These include:

• Excluding highly skilled workers from the Agency Workers Regulations to encourage hiring and investment. 
• Broadening the scope of the Apprenticeship Levy to align with current skills requirements. 
• Facilitating greater government collaboration with businesses to establish regional skills hubs and enhance training initiatives. 
• Introducing more flexible visa policies tailored to attract and retain highly-skilled workers, thereby addressing labour shortages in critical sectors. 
• Ensuring regular review and refinement of Off-payroll (IR35) regulations to maintain a balanced and conducive environment for both businesses and contractors.