Ahead of the Spring Budget this Wednesday (15th March), global recruitment agency, Aspire, has called on the government to announce measures to address the UK’s skills shortages – an issue which is “holding back business growth” and “slowing down the economic recovery.”
While Aspire says hiring confidence is gradually returning, gaining access to the skills needed to grow is a major stumbling block for employers. To help businesses overcome these challenges, Aspire has urged the Chancellor to “think creatively”, suggesting two potential solutions to consider.
Terry Payne, Global MD of Aspire, commented:
“Week by week, we are seeing employer confidence return – firms are eager to start hiring again to fill the gaps that they had mid-2022. However, skills shortages remain a big issue. Businesses are struggling to recruit the skills they need. This is holding back business growth – slowing down the economic recovery.
“The Spring Budget presents the perfect opportunity to announce measures that help solve arguably the labour market’s biggest challenge right now. The government will need to think creatively, though.
“Incentivising retired people back to work is one way to ease shortages. True, some are returning to work because of the rising cost of living. But if the government wants to encourage others to do the same, then targeted tax breaks might be the answer.
“Then there’s the other side of the coin. To stimulate hiring and keep people employed in difficult times, employers’ National Insurance could be reduced. By lowering what is ultimately a tax on employment, businesses would be less inclined to make redundancies. This keeps people in jobs and paying Income Tax, benefitting the Treasury.”
