A Budget of Two Halves
On the surface the Autumn budget had been widely trailed as a budget to kick start the post Covid recovery and for many this was a sign that there would be a stimulus for the jobs market but in truth whilst there has been a focus on skills development there is an underlying threat here for employers.
Analysis shows that for the vast majority of the population there is an increased burden of taxation with little to offset this. We have rising inflation and perhaps most concerning was the immediate race by mortgage lenders to increase rates with predictions that over the next 12 months we will see a series of rate increases. Even the re balancing of alcohol duty will have limited if any material benefit for the hospitality sector.
We are operating in a very fragile employment market with skill shortage, post Covid legacy issues for employees, uncertainty around agile working and a need to drive up salaries at a time when many businesses are faced with real cost and revenue challenges.
Budgets are never easy to deliver and there are always winners and losers but in this case I fear that the headlines of increased public spending will be undermined by the detrimental impact the budget will have on many hard working families.