Chancellor Rachel Reeves delivered her first autumn statement on Wednesday, which included plenty of points for discussion.
Much of the pre-statement hype surrounding plans to increase employer national insurance contributions and raids on personal pensions caused trepidation about how the UK’s temporary labour sector would fare.
A Clear Statement Regarding the Umbrella Sector
For many, the previous government’s lack of action to help the temporary labour sector rid itself of non-compliance and unethical practices was a real frustration. However, the Autumn Statement included a direct reference to the umbrella sector, with the Chancellor committing to “clamp down on umbrella companies that exploit workers and crack down on promoters of tax avoidance schemes.”
This statement was accompanied by a policy paper update confirming that from 2026, recruitment agencies and end-hirers will be accountable for any tax and NIC shortfalls created by non-compliant umbrella companies in their supply chain.
A Huge Step in the Right Direction for Compliance
At Big Fish, we’re delighted to hear that the government has committed to taking action against the non-compliant businesses that plague our industry and profit illegally at the expense of hard-working contractors.
As one of the UK’s most accredited umbrella companies, we will embrace the opportunity to demonstrate how our FCSA and Professional Passport accreditations hold us to account to meet the highest industry standards of service and compliance.
In addition, our SafeRec umbrella certification provides independent, real-time audits of every payslip we produce with audit reporting functionality that addresses the need for transparency throughout the labour supply chain.
The moves proposed by the government in the Autumn Statement are a huge step in the right direction for compliance in our sector. Contractors, agencies, and end clients that take a zero-tolerance approach to non-compliance will benefit greatly from partnering with accredited suppliers like Big Fish.
An Autumn Statement of Opportunity
The autumn statement represents a massive opportunity for the UK’s temporary labour sector.
A commitment to stimulate economic growth by investing in public sector bodies like the NHS, supporting national projects like HS2 and British energy, and providing funding support to industries such as aerospace and automotive all bode well for jobs and recruitment.
Increases in the national minimum wage present higher earning opportunities for those workers at the lower end of the pay scale, whilst increases in permanent employment costs, such as the hike in employer NICs, could stimulate a move toward engaging more temporary workers.
Finally, we see the autumn statement as a first step toward genuinely cleansing the umbrella sector and making it a safe and prosperous solution for contractors, agencies, and end-hirers.
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