Many UK firms are still facing hiring issues as a result of challenging economic conditions, according to a report from the British Chambers of Commerce (BCC).

73% of firms surveyed by the BCC reported having recruitment problems, with businesses in the hospitality sector the most likely to report challenges.

The construction and manufacturing industries are also experiencing issues, and 72% of retail businesses said they have had recruitment problems.

Adverse economic conditions are restricting investment in workplace training, the BCC found.

Jane Gratton, Deputy Director of Public Policy at the BCC, said:

‘The scale of the recruitment crisis remains huge, despite a welcome fall in the number of firms reporting hiring problems.

‘We have just under a million job vacancies in the economy, and skills shortages are damaging businesses’ ability to operate profitably – as well as impacting the wellbeing and morale of remaining staff.

‘Businesses and the government need to work together to resolve this problem. Bringing more people back into the workforce, with rapid retraining programmes and comprehensive support, will help. While many employers remain sharply focused on investment in training, most businesses need more help to get the workforce skills they need.’

Internet link: BCC website

The government have confirmed the increases to the national minimum wage and national living wage that will come into effect from 1 April 2024, the increases were as follows:

This will mean that an employee who is 21 or older who is working 37.5 hours a week will earn £22,308 a year from 1 April 2024, an increase of £1,989 a year compared to the current rate.

Please do not hesitate to contact us at Gareth Hughes & Co on 01492 593345 if you have queries with regards to this or any other payroll matter.

The Chancellor should cement the government’s commitment to small businesses in his Autumn Statement, according to the Federation of Small Businesses (FSB).

The FSB has called for a strong stand against late payments; an extension to the 75% business rates discount for retail, hospitality and leisure businesses beyond March 2024; and training in new skills to be tax-deductible for the self-employed.

It has also urged action to increase housebuilding through the introduction of a new Brownfield Development Relief and new measures to help reduce health-related labour market inactivity.

Martin McTague, National Chair of the FSB, said:

‘This Autumn Statement cannot be business as usual. We need focused action. With inflation barely budging, the Chancellor has a golden opportunity to spur the economic vitality the UK needs.

‘We need clear plans to help small businesses grow. Small firms were key to helping the economy bounce back in 2008, and to replicate that, we need to face this issue head on.

‘The government must act swiftly to end late payments, extend business rate relief and eliminate the perverse disincentive against acquiring new skills.’

The 2023 Autumn Statement will be presented to Parliament on 22 November.

Internet link: FSB website GOV.UK

A large majority of UK business leaders plan to offer employees remote and hybrid working in the long-term, according to the Institute of Directors (IoD).

A survey conducted by the IoD found that 84% of business leaders polled plan to provide office-based staff members with some degree of remote working. The IoD’s survey was conducted between 13 and 30 September 2023 and received 710 responses.

13% of business leaders stated they plan to offer full remote working in the long-term, whilst 18% said they will allow employees to choose how they work.

Alexandra Hall-Chen, Principal Policy Adviser for Employment at the IoD, said:

‘Our research shows that, for a clear majority of businesses, remote and hybrid working are here to stay.

‘Against a backdrop of acute skills and labour shortages in the UK, flexible working is a valuable tool for businesses seeking to attract and retain talented staff.

‘Good flexible working policies can also support groups more likely to fall out of the workforce, such as parents and disabled people, to thrive in the workplace.

‘Anecdotally, we have found that some businesses are moving away from a model marked by full flexibility to a hybrid approach, due to a desire to bring staff together to facilitate innovation and team cohesion, but very few are removing their remote working offer entirely.’

Internet link: IoD website

The National Living Wage (NLW) will rise to at least £11 an hour from April 2024, Chancellor Jeremy Hunt has confirmed.

The Chancellor confirmed the increase in a speech to the Conservative Party conference and said the rise will benefit two million low paid workers. People aged 23 and over are eligible for the NLW.

The Treasury stated that as a result of successive increases, a full-time worker on the NLW will be more than £9,000 better off than they would have been in 2010.

Katherine Chapman, Director of the independent Living Wage Foundation, said:

‘A rise in the statutory NLW from next April is welcome news for low paid workers, but may fall short of the real Living Wage next year, the only rate that is independently calculated based on the cost of living.

‘Our research … showed that 60% of people earning below the real Living Wage had used a foodbank in the past year and nearly 40% were regularly skipping meals.’

Internet links: GOV.UK Living Wage Foundation