With inflation having reached a 40-year high of 10.1 per cent and the economy predicted to shrink by 1 per cent, City A.M. zooms in on the volatile, hyperactive UK jobs market by checking in with Paul Farrer, the CEO and founder of London-based recruitment giant Aspire.
Sitting down with this paper today, Farrer calls on the new Prime Minister, Rishi Sunak, to bring “certainty, stability and confidence” to the UK jobs market by addressing a number of key concerns urgently.
Firstly, he urges Sunak to “rethink the burden that is employers’ national insurance.”
“Scrapping the recent rise in Employers’ National Insurance – one of the few tax cuts to survive the reversal of the mini-Budget – was the right thing to do,” Farrer said.
But he said it doesn’t go far enough, particularly as businesses prepare for the possibility of a recession.
“The Government has to raise revenue to plug the hole in our finances, but taxing companies that hire employees is, in my view, counterproductive.”
Paul Farrer
Farrer elaborated: “The UK needs as many people employed and paying Income Tax as possible.
“If we enter recession and employers are forced to cut costs and make redundancies, then the Exchequer loses National Insurance payments from the employer, the employee and Income Tax,” he explained.
“Clearly, you can’t scrap this tax but the balance that encourages employment and retaining staff must be found,” he added.
Furthermore, Farrer said the new government should...
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