Recruitment trade body responds to Spring Statement 2025

Chancellor Rachel Reeves delivered the Spring Statement earlier this week, with some areas directly affecting the self-employed sector.

Commenting on these points, Tania Bowers, Global Public Policy Director at the Association of Professional Staffing Companies (APSCo), said, “The significant increase in defence spending and, more specifically, the focus on channelling funds into jobs and skills creation within niche specialisms, is welcome news and does demonstrate that the Chancellor has listened to calls to invest in skills.

The expected increase in demand for specialist tech engineering experts in order to implement and manage new defence technology and manufacturing processes will be welcome news for the staffing sector. While the focus of this is on the defence sector in order to secure the UK’s place as a high-tech, international defence powerhouse, the investment in these jobs will have benefits beyond the sector.

“Of course, we can’t overlook the fact that this is all set against an environment of sluggish growth, possible tax rises in the Autumn and the NICs increases from next month, which will hinder the impact of the positive steps.

“It also can’t distract us from the fact that the growth and skills levy needs reform, or that the Employment Rights Bill – which is being debated in the Lords this week – remains a challenge. In fact, it may see push back in the debate on the lack of clarity around zero-hour reforms and their appropriateness to agency workers.”

Tania added, “In regard to the ongoing investment by Government into the NHS, it was dispiriting to hear the Chancellor talk of “bearing down on costly agency spend saving money”, when the reality is that they offer time-critical, skilled support to the service, supplied on a strictly cost controlled framework model. All too often, we hear that money saved on contractors, particularly in IT and other non-clinical roles, to reduce “agency spend” is diverted into expensive SOW consultancy contracts.

“Plans to clamp down further on tax avoidance will be one to closely monitor as new consultations, first mentioned in the Autumn, launch. From the details published so far, there is a lot that could impact the supply chain and would push those in it towards greater compliance.

“The suggested rewards for informants and steps for tackling phoenixism, for example, will have an impact on recruitment supply chains. Proposals to challenge promoters of marketed tax avoidance can include umbrellas of all types and Managed Service Contracts (MSC’s). However, the bigger challenge remains the overall umbrella reforms, which, as we all know, will be complex to say the least.”

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