Mini‑Budget Buzz: How NICs and Skills Shortages are Shaking Up the UK
As the new government gears up for her first Budget, APSCo and APSCo OutSource are calling for an immediate lift in professional skill‑building and robust support for small businesses and the gig economy. The National Insurance contribution (NIC) hike is sparking concerns across the corporate spectrum – especially among SMEs that are already stretched thin.
Why NICs are a Biting Issue
- Higher payroll costs could mean fewer hires or a shift to short‑term gigs to dodge the tax bite.
- Companies might “pass the cost” to their supply chains, leaving the market in a precarious spot.
- Corporate leaders uneasy: “We need fiscal relief, not a higher cost hike that undermines hiring confidence.”
APSCo’s Candid Take
Tania Bowers, the Global Public Policy Director, said: “SMEs are feeling the heat – they can’t afford a NIC jump. It’s a double‑edged sword: plus we’re looking at stubborn skill gaps that could kill economic momentum.”
She added that while the government will need to close the national budget gap, it should support skill acquisition rather than clamp down on hiring. The recent removal of Level‑7 apprenticeships from the levy “will hit the UK’s professional upgrade train,” she warned, especially in finance, law, and STEM sectors crucial for the green transition.
Key Recommendations
- Extend the Levy – divert unused funds to upskill contractor and agency talent.
- Enhance interim measures so firms can get talent on board fast, fueling growth.
- Invest decisively in teaching workforce and streamlining NHS hiring – a win‑win for community and business.
In closing, Bowers summed it up: “The recruitment industry is a UK hero, delivering fresh ideas and jobs. We expect the Budget to recognise that and keep the economy moving forward.”
