The IT Talent Perspective: What The 2013 Budget Means For Recruiters
21st March 2013 · Kevin Howes
Somewhat late to the game, George Osborne made his Twitter debut with what can be interpreted as his micro-blog prequel to the heavily anticipated 2013 budget announcement:
The plan for monetary, fiscal and supply side reform bears significance across all industries and social positions, but what does it mean for businesses, and more specifically, recruiters?
Slightly stunting the recent wave of optimism in the past few months, growth forecasts have been cut to 0.6% (half of the rate forecast last December). But the government’s decision to cut NICs for employers – with a third of small companies no longer paying employers’ national insurance contributions at all – is a move welcomed by businesses, promising to increase jobs created through cutting the cost of hiring and all together ease the rate of unemployment.
This, along with the corporation tax reduction to 20% aims to generate more jobs and boost local businesses, a huge benefit to our industry with the opportunity to increase revenue through the facilitation of these potential new hires.
It was good news also for the IT Sector with a pledge of 3bn to boost infrastructure per year from 2015, however concern was voiced over the UK’s potential lack of skilled workers to complete these new infrastructure projects. As talent acquisition specialists we see the shortage of highly skilled candidates first hand, with the term ‘candidate driven market’ becoming all too familiar. As an individual organisation we tackle this head on through increasing our communication reach and expanding our talent communities to meet the evolving demands of our clients, with our recently launched ‘Talk IT’ networking and knowledge share forum supporting our success.
Tax avoidance failed to dodge this budget announcement with the introduction of three anti-avoidance measures, reiterating the intent for competitive but compliant business operations, a welcomed move from organisations that play by the rules. As an industry frequently associated with bad practice, this is a step in the right direction for recruiters with the government’s proposals supporting the efforts of accrediting association APSCo to crack down on bad practice in the industry and encourage high professional standards.
Those that want to ‘work hard and get on’ seemed to be the mantra running through the chancellor’s statement, with the HM treasury adding that ‘this is a budget for those who aspire to own their own home; get their first job; or start their own business’. This meritocratic approach (a concept with which recruiters will be very much at ease), might seem tough, but between cringe worthy assertions like ‘Aspiration nation’, the key emphasis seemed to be that Britain is very much open for business. And to end on a positive, they’ve scrapped beer duty tax, so we’ll see you in the pub!