Responding to todayís budget announcement, The Recruitment & Employment Confederation (REC), the representative body for the UK recruitment industry, has welcomed the Chancellorís attempts to address skills shortages in the long term but is still concerned about the fragility of todayís UK labour market.
Commenting on todayís budget, REC Managing Director Gareth Osborne, said: Although we welcome the Chancellorís commitment to a skilled and flexible labour market, todayís budget has not alleviated fears that the UK is increasingly losing its competitiveness, with the health of the UK labour market very much under threat. The RECís monthly Report on Jobs ñ conducted in association with KPMG and NTC Research ñ has shown signs of a slowdown in UK recruitment and points to a job market on the cusp of a downward trend.î
In terms of public sector spending REC calls for a lighter hand on the legislation-drafting machine and a greater focus on enforcement practices.
Osborne concludes: ìThe Government should be maximising the effect of existing legislation rather than subjecting businesses to vast investment required in the adoption of yet another legal nuance.î
The REC was pleased to see the introduction of additional measures in a number of key sectors, below spokespeople from the main sectors effected comment on todayís budget.
John Dunn, chair of the REC Education Sector Group and director of Select Education recruiter comments: Evidence from the front line of teacher recruitment shows there is a huge shortage of science teachers in the UK, so we support any moves that would increase their number. However, todayís announcement by the Chancellor is a long term initiative and will do little to address the shortage we are seeing today.î
ìThere are many career changers with science qualifications looking for a move into education, but without a teacher training qualification they are unable to.î
ìWith the right support and mentoring, science graduates could go straight into schools to teach and complete their teacher qualifications on the job. The earlier we get enthusiastic science graduates who want to teach in front of the scientists of tomorrow the earlier we will reap the rewards.î
REC Nursing and Social Care group spokesperson, Peter Cullimore said:
It is encouraging to see that the Chancellor has announced a fairness in pay, with more for nurses, where recruitment is urgently needed.
ìHowever, it is a serious concern that there are some areas that are not covered by the pay review such as care workers working through agencies or in residential or nursing homes. Such workers are unlikely to receive similar increases due to the rigid financial climate that local authorities are operating in.î
Ben Black, spokesperson for the REC Childcare sector group comments on the changes to family tax credit and childcare vouchers:
The news not to cut the taxes for families further but instead use the money to raise the child element of the child tax credit by 14% makes no sense whatsoever. Largely because nobody understands the childcare tax credit never mind uses it. According to Government figures, only a third of people who are eligible for the childcare element of the working family tax credit actually take it up. It’s a mystery as to where this money actually goes.
The announcement that child care vouchers will increase by 5 a week is a small step in the right direction, but yet again, nothing has been done to help parents afford home based childcarers such as nannies. The childcare voucher scheme is the only part of childcare spending that has really worked and therefore, should have been increased substantially. Less than 2000 of the 120,000 home based childcarers are approved for even minimal tax breaks despite the fact that it is the preferred choice of 60% of parents. The priority should have been to get tax breaks for childcare to parents to make the vouchers accessible and easy to use.
REC responds to Chancellorís Budget Speech
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