What is the Autumn Statement?
The Autumn Statement is a Government announcement outlining plans for the economy, highlighting proposed changes across various sectors and legislative areas with the aim of achieving their economic objectives, laid out in their manifesto. The statement is scheduled for presentation on the 30th of October, 2024, this year’s statement is anticipated to concentrate on three main themes:
- Inflation
- Public sector finances
- The labour market
Why is the Autumn Statement Crucial for Recruiters and Recruitment Agencies to understand?
Given the focus areas outlined in the statement, recruiters should prepare for possible changes in:
- Income Tax
- National Insurance Rates
- And Tax Thresholds
Additionally, further insights on Labour’s proposed Employment Rights Bill and initiatives for Single Worker Status may be unveiled, potentially disrupting the landscape for temporary and contract workers within the UK economy.
These developments can directly influence how you and your Umbrella Partner needs to operate to retain your clients, and candidates.
Historically, changes to income tax and National Insurance (NI) rates have been announced during the Autumn Statement. And while recent Conservative budgets have lowered NI rates, Labour now confronts a challenging financial situation, with a reported £22 billion shortfall in public finances. This is likely to drive the Labour Party towards raising taxes and NI, subsequently affecting recruitment agencies and temporary workers.
As disposable incomes reduce, contractors often seek better-paying assignments while simultaneously facing increased NI contributions. This dual pressure presents a challenge for recruitment agencies, which must find ways to manage rising employment costs without impacting contractors or clients.
How can Recruiters like you stay informed on these developments?
Stay connected by following GIFCO on LinkedIn for more updates on this as we track and report on these changes.For further inquiries, reach out directly here.