REC Budget Submission - March 2022

Ahead of the Spring Statement on 23 March, the REC has written to Chancellor, Rt Hon Rishi Sunak MP, sharing our latest labour market analysis and asking government for four key policy changes. On behalf of our members, we have asked government to:

1. Delay the National Insurance rise – as businesses and individuals try to recover from the impacts of the pandemic, whilst also trying to respond to rising inflation, and managing in a candidate-driven market, increasing labour taxes is simply not a fair or effective way of supporting our health service.

2. Reform and enhance the Apprenticeship Levy - the REC has called for the levy to be broadened before, but the impact of reform of the levy in the current labour market could be higher than ever before - helping to fill vacancies quickly by equipping people with the right skills. A more accessible route to using levy money would be a valuable tool in the government’s levelling up agenda and improve social mobility.

3. Ensure workforce planning is front and centre – by establishing a cross-departmental forum, working in conjunction with business and industry to consider long-term workforce planning, identifying potential skills gaps, and introducing the right policies to boost productivity and labour market engagement. A joined-up approach between business and government is the only route to drive the skills revolution we need in the UK.

4. Ensure we have a fair and flexible immigration system - we must have a system that can quickly and effectively respond to the needs and demands of our labour market. Reviewing the Shortage Occupation List (SOL) on an annual basis would position us to better respond to changing needs. We want to see an immigration system that is fair, flexible, and open - if we are truly to grasp the opportunities of Global Britain, post-Brexit, then we should recognise the value of immigration, and not shy away from it.

In addition, we asked government to rethink its policy on banning asylum seekers from working while waiting for their claim to be processed – something that matters more than ever. We recognise the benefits the refugees we are expecting from Ukraine and places such as Afghanistan can bring. Being able to work is a fantastic way of helping refugees feel welcome, integrate into UK society, and contribute to the success of our economy.

We also asked the Chancellor to invest in activation programmes and work finding services, as well as in key technologies to help boost productivity and make the UK an attractive place for business investment.

You can read our full budget submission here.