Talent key in Chancellor's Spring Statement says Morson CEO Ged Mason
On 23rd March 2022 the Chancellor of the Exchequer delivered his Spring Statement with several tax announcements made.
Among these were announcements concerning Employment Allowance and a review of the Apprenticeship Levy. The Employment Allowance will increase from £4,000 to £5,000 from April 2022, meaning eligible employers will be able to reduce their employer NICs bills by up to £5,000 per year. The Government also said it would explore whether the current tax system – including the operation of the Apprenticeship Levy – is doing enough to incentivise businesses to invest in the right kinds of training to develop the talent of the future.
Ged Mason, Morson Group CEO, comments:
“In his Spring Statement, the Chancellor rightfully acknowledged that talent is the backbone of the economy, and whilst it’s disappointing to hear of the confirmed hike in National Insurance Contributions that directly impacts a business’s bottom line, the 1 per cent reduction in the lowest rate of income tax was a positive boost for millions of workers.
“We’re currently experiencing a hiring boom, and there are further plans to mobilise 500,000 job seekers into work by the summer. For the last two years, the recruitment industry has had to think innovatively about redeploying workers into sectors experiencing the most demand for resource; but today, recovery is universal, and facilitating people that are out of work back into the economy is a positive step forward to meet the inevitable talent drains that will arise as industries continue scaling back up. However, more needs to be done to ensure those entering specialist sectors for the first time, or who are retraining in new career paths, are given the support and training required.
“The conflict in Ukraine and the cost of living crisis has shone a light on the UK’s need to be more self-sufficient when it comes to energy, and though it wasn’t directly mentioned in the Chancellor’s statement, the government will soon be setting out its energy security plan, which will rubber stamp investment to scale up hydrocarbon, nuclear and renewable energy generation. This is what this country needs today, and we’re well versed in these core markets to support ongoing skills demands, be it niche and volume labour requirements.
“Businesses working in these markets need immediate support to ensure the next generation is engaged with the type of work being undertaken. Without that, the country’s energy ambitions may never materialise to their full potential, and is why it was reassuring to hear the Chancellor say that he is about to embark on a consultation of the apprenticeship levy, its effectiveness and whether it is incentivising organisations to invest in the right kinds of training, all whilst ensuring the UK taxation system works to support future pipelines of talent.”
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