FCSA

Yesterday’s Budget was always going to be closely watched, but the accidental early leak of the OBR report set the tone for what became a high-stakes afternoon in Parliament. Andy Chamberlain, Head of Strategic Policy and Advocacy at FCSA has now published his full breakdown of the Chancellor’s announcement, and it’s essential reading for anyone in recruitment, payroll or the wider labour market. In his piece, Andy cuts through the noise to outline exactly what this Budget means for businesses, workers and the flexible-labour supply chain. His analysis highlights: 🔸 A Budget built primarily around raising revenue rather than stimulating growth 🔸 Major fiscal drag as tax thresholds remain frozen until 2031 🔸 A significant clampdown on salary-sacrifice pensions that will raise £4.7bn 🔸 Increased employer costs through rising NMW and NLW 🔸 A lack of clarity on umbrella regulation despite recent policy focus 🔸 Missing detail on labour-market reforms expected under the Employment Rights Bill 🔸 Additional tax measures hitting property, dividends and electric vehicles 🔸 A downgraded growth forecast from the OBR, with no standout plan to turn it around Andy also notes what wasn’t in the Budget, including no major measures to improve competitiveness, no meaningful support for SMEs, and no structural changes to strengthen the UK’s employment supply chain.

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🚨 BUDGET 2025 — Summary on today's posts What a day in Parliament. Today’s Budget delivered one of the busiest and most wide-ranging fiscal statements we’ve seen for some time, and we’ve been live-posting throughout, covering every major announcement, shift in policy and early reaction from across the sector. Here’s a consolidated round-up of the key points we’ve shared so far, with the detail still coming in: 🔸 Growth was front and centre of the Chancellor’s speech, despite the OBR’s leaked executive summary confirming the growth forecast has been downgraded. 🔸 A new call for evidence and targeted review on how the tax system can better encourage entrepreneurship. Potential to influence hiring behaviour and economic activity. 🔸 Salary sacrifice pension contributions capped at £2,000, raising an estimated £4.7bn, the second-largest revenue measure after the continued freeze on tax thresholds (£8bn). 🔸 Numerous spending pledges, with the major announcement being the Government’s intention to provide help with energy costs. 🔸 A plan to find £4.9bn in efficiencies by 2031, with savings earmarked for NHS investment. The Chancellor stated these efficiencies will come from cutting political and local government costs and selling government assets. 🔸 Major focus on unpaid tax: • New powers for HMRC to pursue promoters of tax-avoidance arrangements. • The Government expects this expanded enforcement to raise around £10bn. • HMRC and the new Fair Work Agency will target illicit businesses, NMW underpayment, gig-economy abuses and fraudulent operators. 🔸 Commitment to free training for under-25s in SMEs, positive if aligned to employer skill needs. 🔸 Confirmation of no increases to income tax, National Insurance or VAT, manifesto commitments remain intact (for now). 🔸 Income Tax and NI thresholds, previously frozen until 2028, are now frozen for a further three years. 🔸 Significant concern over the impact of the reduced salary-sacrifice allowance. It was originally increased to keep older, higher-earning professionals in work; today’s drastic cut risks the opposite. 🔸 Introduction of a new tax on electric vehicles, marking a notable shift away from previous incentive-driven EV policy. 🔸 Increase to NMW and NLW confirmed. We’ve posted a substantial amount of live commentary today, more than any Budget session in recent memory, and there’s still a lot to unpack. The team is now working through the full detail, including the Red Book, supporting documents and technical notes. A comprehensive analysis will follow once we’ve reviewed everything in depth.

🚨 BUDGET 2025 The Chancellor has confirmed increases to both the National Minimum Wage (NMW) and the National Living Wage (NLW). This will bring much-needed support to lower-income workers, though many employers will now be preparing for the knock-on impact across payroll costs, holiday pay, and wider workforce planning, particularly in sectors already under pressure. We’ll break down the full details and what they mean for agencies, umbrellas and end-hirers once the complete documentation is published.

🚨 BUDGET 2025 The Government has confirmed no increases to National Insurance, Income Tax or VAT. For now at least, the manifesto pledge holds, but with multiple freezes already extended and new revenue-raising measures announced elsewhere, this stability may come with longer-term trade-offs for workers, employers and the wider economy. We’ll continue tracking the detail behind today’s Budget and what it means for the temporary labour market, compliance obligations and employer costs. Follow along for more updates throughout the afternoon.

🚨 BUDGET 2025 A brand new tax on electric vehicles has just been announced — a major departure from years of policy that pushed hard in the opposite direction. For more than a decade, EV incentives have been built on reducing tax burdens to accelerate adoption and help meet environmental targets. Today’s shift signals a clear change in direction, raising big questions for households, businesses and fleets that planned around existing commitments. We’ll keep tracking updates as they land.

🚨 BUDGET 2025 The previous Government froze Income Tax and National Insurance thresholds until 2028, and today’s Budget confirms a further three-year extension to that freeze. This means millions will continue drifting into higher tax bands through fiscal drag, increasing the tax burden without any formal rise in headline rates. For workers already stretched by rising living costs, and for employers managing wage expectations, this extended freeze will have real consequences across the labour market. More updates coming as they land.

🚨 BUDGET 2025 Free training for under-25s in SMEs has been announced, and, in principle, this is a positive move. As long as the programmes focus on genuine, relevant skills, this could help young people access better opportunities, support SMEs with real workforce development, and strengthen the wider labour market. Businesses consistently say they need people with the right skills, not just more initiatives, so delivery will be everything.

🚨 BUDGET 2025 £10bn is expected to be raised by preventing and tracking down unpaid tax, with new powers for HMRC to pursue tax avoidance claims. The Chancellor says this is aimed at tackling avoidance, evasion and fraudulent operators — but the detail will matter. As ever, enforcement must target the genuine bad actors, not create unintended risk for compliant businesses already doing things properly. More updates as they land.

🚨 BUDGET 2025 Further steps announced to track down unpaid tax. The Chancellor is promising new powers for HMRC to pursue promoters of tax avoidance schemes. And alongside this, the Chancellor reiterated that: “HMRC and the FWA will crack down on illicit businesses that blight our high streets and undercut legitimate firms. Enforcing NMW, investigating dodgy businesses, and increasing scrutiny of the gig economy — as well as tracking down fraudulent owners who disappear without paying what they owe.” Clear signs the enforcement agenda is tightening across the entire labour market.