With a general election due next year, a cost of living crisis and high inflation levels, the Autumn Statement, 2023, is of particular interest.
Taking place on the 22nd of November, the Autumn Statement serves as a comprehensive update on the nation's economic health and outlines the government's financial strategy for the coming months.
For contractors, employment businesses and organisations like Champion, this year's autumn statement will likely significantly impact the UK's temporary labour sector.
Diversions from Spring Statement Focus Unlikely
With inflation continuing to hog the financial headlines, the focus on reducing the inflation rate, outlined by Chancellor of the Exchequer Jeremy Hunt in his Spring Budget, is unlikely to have changed.
The commitment to stimulating business growth and innovation will likely remain a vital element of the budgetary strategy. However, Hunt has consistently inferred in the lead-up to the statement that there is little room currently for significant tax cuts.
So where might the Chancellor make his significant moves?
- Business Growth, Innovation and Technology
The government maintains that it is dedicated to positioning the UK as a leader in the global technology landscape, meaning that support for smaller businesses and tax relief initiatives to support R&D are strong contenders to feature.
Assuming that there is support for businesses included in the statement, agencies and contractors can hope this will positively affect the labour market and demand.
- Tax Relief for Low and Middle-Income Households
A surefire way to stimulate economic growth is to bolster consumer spending and reduce the financial burden on households.
Depending on the levels of any tax cuts, some contractors could see a welcome increase in their disposable income, stimulating confidence in the candidate pool and an increase in people looking for and willing to take on new roles.
Following the government's recent consultation paper on 'Tackling Non-Compliance in the Umbrella Company Market', the Autumn Statement could address the abuse of the employment allowance and VAT flat rate schemes that have plagued the umbrella sector.
It may be too early to see wholesale changes in response to the consultation paper; however, tax avoidance in the umbrella sector remains a huge concern to the government and changes, whenever they happen, will surely stimulate confidence in the sector.
Will the Autumn Statement 2023 Prove a Pivotal One for Employment Businesses?
The Autumn Statement 2023, along with next year's Spring Budget, could be pivotal in the direction and governance of the UK's temporary labour market of the future.
With the government determined to steer the country toward a prosperous and resilient future, the flexible workforce will undoubtedly have a significant role to play. However, ensuring that the foundations and structure of the temporary labour supply chain are robust, fair and compliant is critical to ensuring the longevity and success of the sector.
At Champion Contractors, we're already wholly committed to compliance and support all initiatives that make for a secure and prosperous sector. We'll keep a close eye on all Autumn Statement developments, so visit our website at https://www.champion-contractors.co.uk/ or follow us on LinkedIn for further updates.
Alternatively, contact the Champion Contractors team on 0161 703 2549 or email info@championcontractors.co.uk.