"Recent fiscal measures lacked a unified strategic vision for supporting productivity and employment, highlighting the need for collective effort to improve policy coherence. Policy changes introduced in the previous budget had not been sufficiently integrated into a broader economic growth plan, requiring a more cohesive approach to economic strategy."
"Increased employer National Insurance contributions and higher National Minimum Wage levels may have reduced the number of entry-level roles, potentially affecting younger workers and graduates entering the labour market. Particular concern was expressed about youth employment prospects, and elaborating on specific measures the government intends to implement could reassure stakeholders about targeted support."
"The advisory firm suggested several policy adjustments aimed at improving workforce participation and productivity: greater flexibility in the apprenticeship levy system, temporary employer National Insurance relief for firms hiring workers under 24 in their first full-time job, and tax incentives for self-funded professional training and upskilling programmes to enhance employability."
Rachel Reeves faces pressure to demonstrate a clear long-term economic strategy at the Spring Statement. Business analysts argue the UK Government lacks a unified strategic vision for supporting productivity and employment. Recent fiscal measures, including increased employer National Insurance contributions and higher National Minimum Wage levels, have not been sufficiently integrated into a broader growth plan. Concerns exist about youth employment prospects, as policy changes may have reduced entry-level roles affecting younger workers and graduates. Recommended adjustments include greater apprenticeship levy flexibility, temporary National Insurance relief for firms hiring workers under 24, and tax incentives for professional training programmes. Long-standing policy areas requiring review include unchanged mileage tax relief rates and IR35 employment classification rules.
Read at London Business News | Londonlovesbusiness.com
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