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Budget 'was a mixed bag for recruitment'

The chancellor's Budget announcement contained a mixture of good and bad news for the recruitment industry, an expert has suggested.

Kevin Green, chief executive of the Recruitment and Employment Confederation, said that most agencies will welcome plans by Alistair Darling to increase access to finance and reduce the business rates applied to small and medium-sized companies.

However, Mr Green claimed the forecast of economic growth of under 1.5 per cent for the coming year is 'one of concern' and suggests recovery in the UK's employment market will be slow.

'Additional support and training measures announced by the Chancellor will not help unless we boost demand and lift barriers to job creation, such as excessive employment legislation and business taxation,' the expert added.

Mr Green suggested that the government should have scrapped its proposed increase in national insurance in light of these concerns, as it is effectively a tax on jobs.

In his Budget speech, Mr Darling announced a one-off £2.5 billion package to help small businesses, boost investment in national infrastructure and support key skills.
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