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Budget response from IT recruitment specialist Reed Technology
Charles McIntosh, Business Development Manager of Reed Technology, the senior and executive-level IT recruitment specialist, comments on how the Budget will impact on the UK jobs market.
Charles McIntosh said: “From a recruitment point of view, we wanted a Budget that carefully balances cost-cutting with confidence-raising to ensure that job creation in the private sector is stimulated. With this in mind, a fiscally neutral budget coupled with the promise of one million more jobs to be created in the economy over five years, is welcome news.
“For the technology sector in particular, the news that the government plans to help the UK become Europe's technology centre through tax reliefs for the video games, animation and high-end television production sectors, will be welcome for employers. Businesses and consumers will also benefit greatly from the Government’s funding for ultra-fast broadband rollouts in the UK’s 10 largest cities, and a further £50m for smaller cities designed to create ’the best infrastructure’ possible. This positioning supports a recent report which said that by 2016 the internet will represent 12.4% of the UK’s GDP and that online will make up a quarter (23%) of total retail carried out in the UK.
“Looking at the UK jobs market as a whole, job creation is an essential part of a strong economy, with business confidence and optimism vital in securing continued employment opportunities. Measures like reducing corporation tax and simplifying the tax system for small firms will therefore be welcomed by employers.
“The measures introduced to support individuals should also have a knock-on effect on the UK employment market. Recent research that Reed carried out with employers across all sectors has found that two fifths are worried about losing talent from their organisation, with one in five concerned about the migration of talent to other sectors or countries. News that the 50p top rate of tax will be cut to 45p and personal income tax allowance raised to just over £9,000 from next April is good news; not only will it help make people better off but it will also make the UK a more attractive place for businesses, retaining and attracting top talent.
“The most recent Reed job index, published by reed.co.uk earlier this month, showed that the rise in new jobs was at a two-year high in February, with salaries returning to the levels of late-2009. So this news, coupled with some glimmers of hope in today’s Budget, will hopefully mean that we see job creation strengthening over the coming months.”
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