However, in the recruitment sector, a new survey of employers by the Recruitment & Employment Confederation (REC) reveals that they are eager for changes that will help them hire and invest. Also, talent solutions provider WilsonHCG is calling on government to emphasise skills as a priority in its budget decisions.

When asked to rank what their organisation most needs to hear from Hunt tomorrow [6 March 2024], over a third of respondents, or 41.7%, said improving the tax system to support business investment. The most enthusiastic supporters of changes to tax were medium-size businesses with between 50 and 249 workers, or 72.7%, and smaller businesses with fewer than 49 workers (45.7%), the REC reported. 

“This reflects these firms’ lower capacity to invest if the tax system works against them,” the REC explained. “And this clear demand was reflected evenly across the UK’s regions and nations.” Only London was an outlier, the REC noted, with 19% of employers naming it as their top priority while 25.6% expressed a top preference for greater childcare support for parents.

The REC commissioned Savanta to survey by telephone in February 2024, 167 employers across private and public sectors. Organisations surveyed listed the following by percentage as their top priority:

• Improving tax system to support business investment (41.7%)
• Increase access to AI and business automation technology (5.4%)
• Pro-business reforms of immigration rules (3.6%)
• Reform to the Apprenticeship Levy and training provisions (5.8%)
• More coordinated approach to support green jobs and green investment (2.8%)
• Greater childcare support for parents (11.3%)
• Further investment in local transport (9.8%).

REC CEO Neil Carberry added that a reward for the Exchequer in a more sustainable and dynamic labour market is possible if it considers a ‘green tax credit’ for businesses that invest in low carbon skills. This will help towards achieving net zero “and secure our future labour and skills supply”. 

He went to say: “There is no growth strategy that isn’t a green growth strategy. The UK has an opportunity to lead this new industrial revolution – but only if we lower barriers to investment, on tax and on planning.”

At WilsonHCG, areas of focus outlined to improve the skills environment were:

• A reform of the Apprenticeship Levy to prevent funds from going unused
• Better support for the flexible workforce to boost access to skills
• Renewed investment in skills development that meets the real needs of UK employers.

Craig Sweeney, executive vice president of Global Strategic Talent Solutions at WilsonHCG, commented: “We have had a big push on STEM skills due to shortages and that feels like an area for further investment. However, I suspect a new ‘STEM’-like shortage will come in roles which need true personal interaction, empathy and creativity.”