REC responds to Spring Statement

(2 minutes to read)

One of the Chancellor’s points looked at how improving people’s skills benefits both individuals and the wider economy. To support upskilling and retraining, the government is seeking views on extending the current tax relief to support self-employed people and employees when they fund their own training.

After announcing his first Spring Statement to Parliament last week, the Chancellor covered many areas, however, there will be many self-employed workers out there relieved that IR35 has been left alone (for the time being).

Tom Hadley, Recruitment and Employment Confederation’s (REC) director of policy, commented, “It’s encouraging that the government has so far not brought forward a consultation on IR35 in its Spring Statement. We hope that the government is instead focussing on a more holistic approach to employment status, tying into recommendations from the Matthew Taylor review.

“We’ve been saying for a long time that introducing changes to IR35 in the private sector would be premature, as the impact of the public sector changes is not yet fully known and there are still issues with implementation that need to be rectified. The majority of our members say it was implemented badly and the employment status for tax tool is still not up to scratch. These issues need to be rectified and we look forward to working with the government on this and continuing to represent the views of our industry.”

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He added, “The focus on education and skills, including additional funding for construction skills and T-level preparation, are welcome – especially in light of ongoing staff shortages picked up on in our monthly data.  We will continue to push for the Apprenticeship Levy to evolve into a broader training levy that recruiters can use to boost skills and progression of temporary and contract workers on their books.”

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