On 3 March, Chancellor Rishi Sunak outlined a plan to support jobs and businesses as the UK emerges from the pandemic. But what were the responses of professional business organisations?
IWFM CEO Linda Hausmanis published a comprehensive comment on the Chancellor’s announcements. She said:
“This Budget has come at a pivotal, once-in-a-generation moment for the UK as we emerge from the pandemic. IWFM supports the general consensus that, to ensure long-term prosperity, the government must prioritise securing our economic recovery and building a fairer, more sustainable economy in line with its objectives on ‘levelling-up’ and climate change.
“We therefore welcome the Chancellor’s announcement, as the first stage in this recovery, on extending support and protections to businesses and the self-employed up to and beyond the current pandemic restrictions and whilst the vaccine programme is rolled out. In particular, the extension of the furlough scheme until 30 September should help to ensure continuity of employment for thousands of workers and a smoother, more gradual reopening of workplaces.
“A coordinated skills and training policy, which helps to create employment opportunities and equip people with the tools to take on the jobs of the future, will be key to our improved productivity and future economic success. This is particularly important for the workplace and FM profession which has quickly evolved into a diverse, multi-faceted discipline; a trend which has been sharpened by the pandemic. Our profession’s skills shortages have already been well documented and it is far from clear yet how this issue will be exacerbated by the UK’s post-Brexit immigration policy. Further insight on sector trends will be provided in the findings of our latest Market Outlook Survey, due to be published in the coming weeks.
“We are encouraged by the Chancellor’s additional funding for apprenticeships and traineeships in England, including doubling the current cash incentive to £3,000 for firms which take on an apprentice, regardless of age, and extra money for 40,000 more traineeships. With unemployment at its highest level for almost five years and apprenticeship starts curtailed by the pandemic, we hope these steps will encourage workplace and facilities management organisations to create new opportunities, particularly for younger workers entering the profession.
“We await with interest further detail on the new 'portable' apprenticeships that, from July this year, will enable apprentices to work across multiple projects with different employers in one sector.
“However, we are disappointed that the Chancellor has not taken this opportunity to reform the apprenticeship levy by giving employers the flexibility to use it across a wider range of training provisions. A more flexible levy would allow businesses to upskill existing staff through other forms of training that are less expensive, and more suited to the needs of individual employees. IWFM will continue to make the case that this policy change would provide a massive boost to skills development and productivity levels throughout the economy.
“We also welcome the new Help to Grow fund aimed at helping SMEs to improve their productivity. This will provide access to management training, mentoring and free online advice on technology from leading business schools, and discounts on government-approved software.
“We are also pleased that the Chancellor has resisted pressure, both from within government and from some business and trade bodies, to hold back on planned increases to the National Minimum Wage from April as a means of helping businesses with the economic consequences of the pandemic. As a Living Wage Employer, IWFM encourages our members to pay all their staff the higher real Living Wage and we have published guidance which illustrates the business case for paying the real Living Wage.
“However, the Budget lacked any evidence of addressing inequalities in our society - an issue which has been further highlighted during the pandemic - therefore we will continue to pursue the desire for a fairer society for all.
“Finally, it is also vital, in the year that the UK hosts COP26, that Government funding for its decarbonisation plans - including the aim for new non-domestic buildings to be ‘zero-carbon ready’ by 2025 - matches their ambition for the built environment. We were therefore surprised that the Budget makes no provision for further funding to support the decarbonisation of buildings and transport, and we support the UK Green Building Council’s call on the government to deliver on a green recovery and not jeopardise progress by withdrawing spending on Green Homes Grants.”
Meanwhile, Christian Cubitt, RICS Head of Government Affairs, UK & Ireland said:
“With the country finally able to begin looking beyond COVID-19 thanks to the vaccination programme, this budget delivers the incentives needed that will help build our way toward economic recovery. The Chancellor is absolutely right to use the full ‘fiscal firepower’ available to him to support businesses and families across the UK.
“The extension of the furlough scheme, combined with new grants for small businesses and further support for the self-employed, are extremely welcome measures which will give many firms the best possible chance of emerging from the pandemic with jobs intact. For those that have lost their jobs, in particular young people, the commitment to increase funding for skills and support for apprenticeships is very welcome. Apprenticeships have proved an important route into this profession for many from a range of diverse backgrounds and we continue to champion them.
“This focus on the big picture is right and it is essential for all RICS professionals that we have a strong functioning economy. The Chancellor was also upfront about where some of the future pain would come as the huge borrowing spree that the government has been on will have to be paid back. The decision to not raise the threshold for income tax was expected, as was the commitment to raise corporation tax in time. These measures will help start to balance the economy again and it is important that businesses and families know what their impact will be and when that will be felt so they can plan accordingly.”
The institute has produced an in-depth article on the issues raised.
Speaking on what the changes mean for employers, Anna Elliott, a partner in the employment team at Osborne Clarke said:
“Together with commitments to wider business support through restart grants and recovery loans, these measures will be a welcome relief to employers looking to get their businesses back up and running in accordance with the prime minister's roadmap. Many will hope that the extension of the CJRS will avert the need for wide scale redundancies as the vaccination programme continues to progress. The COVID-19 pandemic has also highlighted underlying issues such as domestic abuse, with the government recently publishing the outcome of its review into workplace support for victims. The budget pledges £19m to tackle domestic abuse in England and Wales.
“The budget also has an eye on the future of work and the impact of the wider use of technology and the need to upskill the workforce. The government's Build Back Better plan for growth highlights that COVID-19 has forced businesses to rethink their operations, how they engage with staff and their use of technology. BeTheBusiness estimate that three years' worth of digital transformation took place in three months when the required public health measures began in March 2020. The paper identifies that '80% of the workforce of 2030 are already in work today and we need to offer them the opportunity to upskill and reskill over their careers to progress and adapt to changes such as automation'. To do this the 'the government is transforming further education, encouraging lifelong learning through the Lifetime Skills Guarantee and building an apprenticeship revolution' as well as 'encouraging the adoption and diffusion of innovative ideas and technologies across the economy'.
“An immediate challenge for businesses, however, will be to manage employee expectations around continued homeworking. The government has already committed to reviewing how social distancing measures should be continued and eased, and as part of this is looking at the continuation of the guidance that all those who can work from home should. With the outcome of the review expected before 21 June, this will be an issue which employers must now prioritise. However, continued homeworking is just one part of the larger picture and employers are now having to address a number of fundamental issues about how their businesses are run, with reviews of property portfolios, de-carbonisation initiatives and how working models support diversity just some of the substantial issues having to be considered.”