The REC (Recruitment & Employment Confederation) are the professional body for the UK recruitment industry. They published a blog on the 30th October 2018 around the recent budget which included specific areas of interest to recruiters.
Here are the five-key mentions around recruitment detailed in their blog from the 2018 budget:
IR35 extension is delayed until 2020: IR35 rules will not be extended to the private sector until April 2020 and only for medium and large firms. This is a big win and comes after intensive lobbying from the REC and other stakeholders. Having to implement these changes in 2019, at the same time as dealing with Brexit transition, would have been hugely challenging.
The Apprenticeship Levy will be reformed: The Chancellor confirmed that large businesses will be able to transfer up to 25% of their apprenticeship fees in their supply chain and have reduced the contribution required for apprenticeship training for small businesses from 10% to 5%.
National Living Wage will increase to £8.21 in April: The Treasury have accepted the recommendation of the Low Pay Commission (LPC) to increase the National Living Wage from £7.82 to £8.21 from next April. The LPC’s recommendation remains on the path to meet 60% of median earnings by 2020. The LPC also recommended above inflation increases to the National Minimum Wage for 21-24-year olds (£7.70), 18-20-year olds (£6.15) and 16-17-year olds (£4.35) as well as a new apprentice rate of £3.90.
Specific sectors will benefit: As part of the government Plan for the High Street they have committed to cutting business rate bills by 90% for retail properties with a rateable value below £51,000 for 2 years from April 2019.
Jobs remain front and centre: The Chancellor confirmed that the jobs miracle is set to continue with the Office for Budget Responsibility (OBR) predicting that there will be 800,000 more jobs by 2022 – so plenty of vacancies for recruiters to help employers to fill over the coming years.
You can visit the REC website here and read more of their blogs.
(With many thanks and credit to the Recruitment and Employment Confederation for the content, text and image)