A recruitment entrepreneur’s thoughts on the summer Budget
The Summer Budget was always going to be hotly anticipated. Not only was it delivered by an entirely Conservative Government (the first in nearly 20 years) now free of the Lib Dem shackles, it comes so soon in to the new Parliamentary session, so that Government can start bringing forward positive change.
In Chancellor George Osborne’s “new settlement from a one-nation Government”, he updated the nation on economic and public finance forecasts, and revealed the scale of the cuts ahead for public services and welfare payments. One thing I was certain of was that Osborne would use this new freedom to get tough. Echoing the warnings from March’s pre-Election Budget, he promised there would be no short-term fixes but that Britain would continue with “moderation but determination”.
There was never any doubt that the main focus would be on Conservative attempts to balance the books with further cuts in public spending. Austerity, welfare cuts and public sector pain formed the main backdrop to Osborne’s speech, but it seems that there may now be some scope to ease the pressure on public services. This follows his announcement last month that he would change the nation’s fiscal mandate to legislate for budget surpluses in normal times.
With borrowing this year seemingly lower than was expected in the last Budget, it now looks possible that the Chancellor can scale back some of the harsh cuts planned in 2016-17 and 2017-18 and still get the Government’s books back into the black. Many even said prior to today’s announcement that George Osborne is likely to have up to ￡15bn more wiggle room on the public finances than expected three months ago, easing the path to a budget surplus.
Whilst we are making some very positive steps forward, there is still much work to be done in stabilising economic recovery, lowering the unemployment rate and creating a fairer society. The big question is how quickly the chancellor implements his ￡12bn of welfare cuts and whether this fiscal consolidation will damage the recovery.
Having said this, I am in full support of the Chancellor’s growth-friendly definition of his new budgetary framework, setting out how we will achieve a surplus over a five-year period. It is my hope that this will minimise the impact on the economy, as well as provide more time for monetary policy to return to a position where it can offset the fiscal squeeze.
As a multiple business owner and entrepreneur, I was also interested to hear the announcements surrounding growth plans in the North West. A large proportion of my businesses are based in the North of the UK, and so I welcome Government’s plans to grant new powers and continue to build our Northern Powerhouse; it is a thriving and profitable economy and great place to do business.
I agree with Osborne’s belief that even two decades on from the introduction of the Sunday Trading Act, it is clear that there is still a growing appetite for shopping on a Sunday. The rise of online shopping, which people can do round the clock, means more retailers want to be able to compete by opening for longer at the weekend. As Osborne says, it is true that this will not be right for every area, so perhaps power should be devolved so mayors and local authorities can make this decision.
What will be interesting following the lift on this restriction, is how further relied upon temporary workers will be to plug the gaps. According to Office for National Statistics (ONS), in September 2014 over 299,000 people in the UK were working in a temporary role because they did not want a permanent job. My businesses and I are champions of the importance of temporary and contingent workers; they are an integral part of UK plc and temporary working is becoming, for many, a lifestyle choice. Whatever your political stance, top line employment figures in the UK are looking healthier and the figure of 2 million jobs created in 2014 speaks for itself.
Conclusively, this was one of the boldest budgets in a very long time and will fundamentally recast the relationship between the state, the individual and the employer. I for one am very hopeful that it will start to bring forward even more positive change.
Independent Consultant (Workforce Management)
9 年looking forward to a growing workforce and the opportunity to add value, managing its increasing diversity.