Considering the amount of hype and expectation within the umbrella sector leading up to Wednesday’s Autumn Statement, there was disappointment from many after Chancellor Jeremy Hunt had delivered his plans.
However, that’s not to say that the statement didn’t contain any points of interest for the UK’s temporary labour sector.
With the Chancellor’s statement leaning heavily towards stimulating economic growth, supporting UK businesses and getting people back into work, the longer-term impact of the statement was likely to hold some interest for the employers, employees and the self-employed.
How did the Autumn Statement Impact the Umbrella and Recruitment sectors?
The umbrella sector has been the subject of much conjecture in recent years; however, the statement contained little directly about the sector.
In contrast, the recruitment industry had some interesting elements to consider.
We’ve highlighted some of the major points below;
- From the 6th of January 2024, Class 1 employee NIC will reduce from 12% to 10%.
- Class 2 NIC for the self-employed will be abolished from the 6th of April, 2024.
- Class 4 NIC will reduce from 9% to 8% from the 6th of April, 2024.
- The national living wage is to increase to £11.44 per hour for anyone aged 21 or over.
- Tax relief on plant and machinery expenditure, known as full expensing, is to be made permanent and should stimulate billions more in business investment.
- Further investment in and additional investment zones resulting in an additional 65000 jobs.
- Back to work plan for the sick, disabled and long-term unemployed, expanding candidate pool.
- Stricter measures for those seeking benefits to help encourage people back into work.
Autumn Statement Summary
Umbrella contractors, low-level earners and the self-employed will benefit from cuts in national insurance and an increase to the national living wage in 2024, giving workers some much-needed financial relief from recent rising costs.
Businesses of all sizes will benefit from several tax relief and funding initiatives, which have all been introduced to help stimulate growth and investment.
The benefits may not be immediate for the UK temporary labour sector; however, the long-term prospects due to increased investment, job creation, and a broader candidate pool should all bode well for a buoyant employment market in the coming months and years.
