Does it mean anything for me? In the aftermath of a UK government Budget announcement, everyone rushes to pick over the details and find out the implications. And there’s usually a lot to chew over. Much is open to interpretation and argument, but here’s the Atlantic Resource attempt to shine some light.So what did the 2016 Budget mean for jobs and employment in the UK?national-living-wage

Self-employed boost

Class 2 National Insurance Contributions will be abolished for self-employed people. Meanwhile, an increased personal allowance should also be in their favour, suggesting improved recognition of the increasing population of self-employed workers.

Demystifying Tax?

Multiple tax measures included a new ‘Business Tax Roadmap’ with the aim of giving UK businesses more transparency. Other measures included the following.

  • 600,000 businesses paying no business rates, and 250,000 paying lower rates
  • Corporation Tax reduced to 17% from 2020
  • Termination Payments over £30,000 subjected to National Insurance Contributions and Income Tax.

Education

A major topic, even the day before the budget, was that of schooling. The Chancellor confirmed that all state schools will become academies by 2020, with the promise that this gives greater financial control for schools. How this impacts employment, from teachers to catering staff to caretakers, will be one to watch with close attention.childcare-and-work[Read the Atlantic Resource blog: Balancing Childcare and Work]

Disability Employment

Improved support was pledged to disabled people seeking employment. Various measures and non-government affiliated initiatives are active in this area, and positive collaboration between parties should only be good for all stakeholders.

Limits on contractors

Determining the employment status of public sector contractors will change from 2017, switching from the limited company of the contractor to the public sector organisation being engaged. Although, this responsibility could be shifted to recruitment agencies when they initially engage a contractor.The Association of Professional Staffing Companies (APSCo) has warned that a move to ‘crackdown’ on personal services companies poses a “serious threat to the professional flexible recruitment sector.”Further industry consultation is expected on the issue, and we hope that the flexibility currently enjoyed by many is not compromised.

Construction rising

Big infrastructure projects including HS3 and CrossRail 2 were given exposure. Extra funds were pledged for a four-lane M62, a tunnelled road from Manchester to Sheffield, and upgraded major A-roads.George Osborne said: “We’re making the Northern Powerhouse a reality and rebalancing our economy.”  Fears may remain though, involving the lack of relevant technical and engineering skills required for such projects.Other outlets have dug deeper into the detail to express long term fears about autonomous vehicles. It’s said that consultation this summer may enable autonomous vehicles on England’s major roads, with other potential developments being a £15m ‘connected corridor’ from London to Dover and driverless cars trialled on a strategic road network by 2017. Might this eventually have a significant impact on the jobs market? Time will tell.[Read the Atlantic Resource blog: Heavier Fines For Catering and Construction Incidents]

Budget 2016 Response

There has been a broad Budget backlash from the left, particularly concerning the impact of economic plans spending cuts on young people and women.  Although others might equally suggest that this 2016 Budget was good for self-employed people, as well as for those in jobs.For people in Wales, will it represent much of a change in fortunes? It’s commonly known but often unspoken about that the proportion of workers earning a high income in Wales is much lower than the UK average, as illustrated in this graphic.

But with increased development and construction being seen in the capital of Cardiff, and in Swansea and across other parts of South Wales, some might hope this will gradually change over the coming years.Need to talk over your current career options in construction, office admin, catering or care? Please get in touch.