Recruitment body responds to Spring Statement

Last week, Chancellor Rachel Reeves announced the Spring Forecast in Parliament, with the primary focus being economic stability.

The Chancellor said that the current economic plan is ‘the right one’, with figures showing inflation is falling, and borrowing is down, both living standards and the economy are seeing growth, and people are set to be £1,000 better off.

Spring Statement – Key Takeaways

• UK growth forecast cut – GDP growth for 2026 downgraded to 1.1% (from 1.4%).
• Unemployment is expected to rise (likely to peak around 5.3% in 2026).
• Inflation expected to fall – forecast to drop to 2.3% in 2026, and 2% by 2027.
• No new major taxes or spending measures.

REC Responds: “The only way to tackle the cost-of-living crisis is to support businesses to grow by addressing the barriers they face’

In response, Neil Carberry, Chief Executive of the Recruitment and Employment Confederation (REC), said, “Today’s Spring Statement, which comes amid rising gilt rates and energy prices, shows again that growth must be the government’s first priority.

“The only way to tackle the cost-of-living crisis is to support businesses to grow by addressing the barriers they face. The Chancellor outlined a wide range of policies designed to do this, but far more urgency is required in the delivery of these plans. And government needs to heed the calls of employers who are worried that some policies will make the situation worse.

“Today, too many of Britain’s businesses are still on the brakes and leaving our growth underpowered, while international businesses find the UK less attractive than they did once. The upcoming announcements on youth unemployment, including apprenticeship reform, need to tackle disincentives to hire created by poor regulation and high taxes, as well as ensuring skills support is more effective.”

Neil added, “Having just one fiscal event each year gives employers much needed stability, allowing them to get on with running their businesses without the distraction of constant tax and spending speculation.”

To find out more about contracting, please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.