Autumn Statement 2024 prompts hirer hesitation

A recent article published by ContractorUK raised concerns that the announcement of the Autumn Statement for October 30th, 2024, had caused hesitancy in the UK's temporary labour sector.

The article highlighted figures published by the Recruitment & Employment Confederation (REC),indicating that hirers had adopted a “wait and see” attitude in response to concerns about what the statement might include.

Temp recruitment remains flat-ish

According to Neil Carberry of the REC, temporary recruitment in the UK had remained flat-ish in August. The figures confirmed, for example, that demand for IT contractors continued to fall during July and August, 2024.

While the summer months are notoriously slow for recruiters and figures generally fall during this period, the article highlighted several indicators to support its hesitant theory.

Uncertainty cited as the main culprit for reluctance

Following Labour's election to government, much of the intent coming from the party was around stimulating growth and building a strong economy. For recruiters, and many other businesses, this was welcome news, however it is the plans for employment law that appear to have tempered hopes.

According to the article, it's not so much the sweeping changes to employment law that Labour is proposing but the lack of clarity of detail that is causing concern. With no consultations having taken place on Labour's proposals and nothing likely before the autumn statement, the article states that UK Plc has been left in recruitment limbo.

Will Labour's Single Worker Status impact temporary recruitment?

Labour's proposal to introduce a Single Worker Status, which would unify the employment status of all workers—whether full-time, part-time, or temporary—could have the most significant impact. Particularly, it could go some way to helping define genuinely self-employed contractors who operate outside of the IR35 legislation.

However, the question remains: Will it have any fundamental impact on how hiring organisations engage contractors on an outside IR35 basis?

For now, the Champion team is keeping a close eye on developments and we'll be updating our clients on developments as we hear more.

Stay tuned for updates by visiting our website at https://www.champion-contractors.co.uk/ or following us on LinkedIn.

Alternatively, you can contact the Champion Contractors team on 0161 703 2549 or email info@championcontractors.co.uk.