Unemployment rates have jumped to a level not seen since 1947 whilst job vacancies have fallen to their lowest level for three years. Amidst fears of unemployment numbers rising to almost 5 million once the furlough scheme is unwound, the Chancellor is looking at options to boost the number of job vacancies and encourage recruitment.
The Daily Telegraph has reported that the Government is considering implementing an increase in the employment allowance for SMEs. This allowance currently serves to reduce their annual National Insurance by up to £4,000. It is anticipated that this type of tax relief could be increased further specifically to cut costs for smaller firms and allow more scope for recruitment.
It is also reported that the Treasury is discussing national insurance holidays to reduce the fixed costs of some businesses.
Business leaders have expressed their support for these type of measures that would ease the tax burden on employers. We await comment from the Treasury, but it is understood that a job package will be announced in Autumn focusing on infrastructure, skills and tech.
Treasury officials are discussing an increase in the employment allowance to reduce the tax burden on smaller firms and encourage recruitment, according sources close to the talks. They are drawing up plans for a jobs package in Autumn with infrastructure, skills and tech set to be three key planks of the new measures.