Budget 2014: More investment for apprenticeships pledged

An energy sector jobs boost, recruitment help for SMEs and Apprenticeship Grants for Employers (AGE) success rates were the main headlines concerning our industry from yesterday’s 2014 Budget.

And luckily for the Chancellor, predictions made last year about the growth of the economy and relief for the jobs market have been backed up by figures released by the Office of National Statistics yesterday also.

The report showed that between November 2013 and January 2014, unemployment fell by 63,000, with almost half of that figure accounting for 16-24 year olds. Average earnings also increased by 1.4%, with a rise in the number of self-employed also recorded.

The positive news for these two groups of people was the focus at least of the recruitment side of this year’s Budget, with the government pledging continued support of Enterprise Zones to help entrepreneurs and start-ups hire staff and grow their business through private investment.

Mr Osborne also revealed that the AGE scheme will continue to be a key focus in 2014, with an extra £85 million being invested to provide more than 100,000 grants over the next two years.

This in particular has been received well by leading HR and recruitment bodies and industry leaders, who keenly recognise the critical link between investment in young people and future growth.

British Chambers of Commerce director general John Longworth said: "With a huge confidence gap still separating employers from young job-seekers, we are very pleased to see the Chancellor heed our call to help firms take on and train tomorrow's workforce.”

On a less positive note, many were left disappointed to discover that the plans to remove under 25s from employers National Insurance Contributions did not form part of this year’s Budget as expected. Had it been included, the cost of hiring would have been dramatically reduced for many companies through lifting 1.5 million young workers out of the jobs tax. Allusions were made, however, to this forming part of next year’s reform plans – a pledge that campaigners will no doubt continue to keenly push for.

As ever, I welcome and applaud any initiative that serves to create jobs and strengthen our industry. Support must therefore also be pledged on a local as well as national level in order to keep this slow ascent towards recovery going.