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UK — REC gives initial response to the Chancellor's budget statement

25 March 2010

The Recruitment and Employment Confederation (REC) has commented on the Labour government's last budget before the general elections this year, which was presented to the House of Commons by Chancellor of the Exchequer (Finance Minister) Alistair Darling yesterday afternoon.

REC Chief Executive Kevin Green said, "The overall economic outlook remains one of concern with the Chancellor forecasting only 1% to 1.5% growth. This confirms that the road to recovery for the UK jobs market will be very slow-going."

"Additional support and training measures announced by the Chancellor will not help unless we boost demand and lift barriers to job creation, such as excessive employment legislation and business taxation. Within this context, it is disappointing that there has been no move to shelve the proposed increase in National Insurance which is tantamount to a tax on jobs."

"Specific support measures for jobseekers announced in the Budget include enhancing access to working tax credits for older workers and extending the young person's jobs guarantee until March 2012. Assessing the effectiveness of support measures for young jobseekers is one of the aims of the REC's Youth Employment Taskforce."

Green went on to say, "business rate reductions for SMEs and enhancing access to credit will be welcomed by most agencies. Looking ahead, a major challenge for the industry is how public expenditure cuts will impact on public sector recruiters. The REC will continue to argue that a radical new approach to public sector service delivery is needed and that flexible staffing arrangements should form part of this."



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