We have welcomed measures in the Chancellor's Budget designed to ease cost-of-living pressures and support business growth, including the introduction of a new Founders Relief on Capital Gains Tax and the expansion of the EMI2 share option plan.
We also welcomed confirmation that there will be no increase in direct taxes on employment and recognised the Government's continued focus on workforce planning, labour market participation and investment in growth-driving sectors such as AI, defence and life sciences.
We believe these measures provide valuable support for entrepreneurs and scaling businesses, although uncertainty across the labour market continues to weigh on hiring confidence.
Tania Bowers, APSCo Global Public Policy Director, said:
"The Chancellor was right to focus on helping people and businesses manage rising costs, particularly with significant energy price increases and continued pressure from interest rates. We welcome support for entrepreneurs through the new Founders Relief and the expansion of EMI2 share options, which should help innovative and scaling businesses attract investment and talent.
However, there remains considerable uncertainty around employment policy. The most significant provisions of the Employment Rights Act, including fire and rehire reforms and guaranteed hours, are still to be implemented in 2027 and beyond, making it difficult for businesses to plan with confidence.
While we can see that a ban on employee 'non-competes' could result in more agile hiring, we have concerns if changes to non-solicitation and non-poaching clauses are introduced. These are needed by employers to protect their confidential information, IP, and business value.
For our members, the administrative burden is increasing rather than decreasing. Technology and AI will play a critical role in helping recruiters and employers navigate increasingly complex obligations across employment law, right-to-work requirements, and data protection."
We therefore welcome the Government's £600 million investment in AI safety and measures to increase AI adoption.
Devolution measures, including greater retention of business rates and a proportion of income tax revenues, could provide additional flexibility for regional investment in skills and workforce development. We continue to call for agency workers and more flexible hire-train-deploy models to be included within Growth and Skills Levy funding to boost innovation.
Ultimately, success will be measured by whether these measures help create conditions for stronger hiring, increased workforce participation, and increased business investment in the UK.