Professional recruitment sector calls for a Budget that boosts jobs, skills, and NHS innovation

The Association of Professional Staffing Companies (APSCo UK), has urged HM Treasury to focus the upcoming Budget on regulatory and tax reform measures that support controlled labour market flexibility, rather than increase taxes.



In its submission ahead of the November Budget, APSCo has outlined a series of targeted recommendations designed to drive economic growth in ways that positively impact people's everyday lives, including:



- Tax and regulatory reform: APSCo has urged the Government not to increase employer taxation, warning that further rises in National Insurance Contributions, Corporation Tax and the Growth and Skills Levy could stifle job creation and investment. Instead, it advocates for reforms to IR35 and employment status definitions to support flexible working models and reduce administrative burdens.

- Umbrella market regulation: The trade body has also called for a licensing regime for umbrella companies, improved data sharing with HMRC, and increased funding for regulators to tackle non-compliance and protect the integrity of the labour supply chain.

- Support for NHS workforce innovation: APSCo has recommended funding for a digital work passport, standardised compliance across NHS frameworks, and recognition of the vital role temporary and contract workers play in delivering healthcare transformation.

- Investment in skills and talent access: APSCo has endorsed full allocation of Growth and Skills Levy and Immigration Skills Charge funds into domestic training initiatives, alongside reforms to visa routes to attract highly skilled professionals in sectors such as IT, engineering, and life sciences.

- Employment rights reform: While supporting the creation of the Fair Work Agency, APSCo warns against overregulation and calls for sufficient funding for Employment Tribunals and ACAS to avoid delays and maintain labour market confidence.



Tania Bowers, Global Public Policy Director at APSCo commented:

“The professional staffing sector is a £43 billion success story, but it faces persistent challenges. Our members are ready to support the Government’s growth agenda, but they need a policy environment that fosters flexibility, innovation, and confidence. This Budget is an opportunity to deliver meaningful reform that empowers employers and workers alike.



“What truly matters in this Budget is delivering growth that people can experience in their everyday lives. Fiscal conditions directly impact the cashflow businesses need to hire staff and build a skilled workforce. Our research and member sentiment show cautious optimism, but confidence remains fragile. That’s why we are calling on HM Treasury to avoid further tax burdens on employers and instead focus on regulatory and tax reforms that support flexibility and productivity.



“APSCo has put forward strong arguments for supporting the staffing sector, recognising it as a supportive partner in the UK’s economic growth. We must support SMEs, value flexibility, and in particular, recognise the economic contribution of contracting and consultancy. These models offer agility, innovation, and access to specialist talent that is essential for modernisation and competitiveness. The Budget must reflect this reality.”







Press contact

Vickie Collinge

vickie@bluesky-pr.com

01582 790 705



About APSCo

The Association of Professional Staffing Companies (APSCo) is the trade association for the professional recruitment market. APSCo Global comprises APSCo South East Asia, APSCo Australia, APSCo Deutschland and APSCo United Kingdom as well as APSCo OutSource, the trade body for the RPO and MSP sectors.

Find out more: www.apscouk.org www.apscouk.org