The UK’s Autumn Budget 2024, introduced by Chancellor Rachel Reeves, brings significant changes that will reshape employment practices within financial and professional services. Key measures like the National Insurance Contribution (NIC) hike, support for regional employment, and adjustments in tax policies require strategic planning for firms to remain competitive and adaptable.
NIC Increases: rethinking payroll and benefits
One of the budget’s most impactful changes is the rise in employer NICs to 15%, with the threshold reduced to £5,000, effective April 2025. Betsy Williamson, CEO of Core-Asset Consulting, highlights the need for firms to manage these costs without compromising talent attraction: “This is a pivotal moment for firms to rethink payroll structures. Implementing salary sacrifice schemes or enhanced benefits can help mitigate NIC costs, preserving talent competitiveness.” This approach can enable firms to manage rising employment expenses while still appealing to top candidates (KPMG, 2024; Unbiased, 2024).
Talent retention amid regional investment initiatives
The budget’s focus on regional development, particularly in Scotland, signals positive growth opportunities for firms operating outside London. However, Williamson stresses that investment in Scotland’s financial hubs must be coupled with policies to make the area attractive for skilled professionals.
Scotland’s financial sector plays a vital role in the UK economy, but high costs make tailored policies essential for sustainable growth. Incentives for investment in Edinburgh and Glasgow are critical to attracting and retaining talent.
Betsy Williamson Chief Executive Officer, Core-Asset Consulting
This policy-backed support can enhance Scotland’s standing as a desirable employment region (Core-Asset Consulting, 2024; Financial Times, 2024).
Enhanced client advisory roles to navigate tax shifts
The anticipated changes in Capital Gains Tax (CGT) and Inheritance Tax (IHT) heighten the need for advisory roles in wealth management and estate planning. Rachael O’Neill, Director of Investment Operations at Core-Asset Consulting, advises, “As tax adjustments loom, proactive planning is crucial. We’re guiding clients on trusts and tax-efficient wealth transfer options.” With increased tax burdens on the horizon, financial services firms may see growing demand for advisory talent skilled in tax planning and asset protection (Hawksford, 2024; Financial Times, 2024).
Digital transformation
As full expensing continues and corporation tax is capped, firms have more flexibility to invest in technology. This will likely increase demand for IT and digital specialists within the financial sector. Louise Powrie, Managing Director at Core-Asset, highlights the recruitment implications: “Investing in cybersecurity and digital tools is critical for modern operations, making tech talent more crucial than ever. This budget support allows firms to attract and invest in digital expertise.” Recruiting skilled IT professionals will be vital as firms optimise operational security and efficiency to meet evolving client needs (Computer Weekly, 2024; Unbiased, 2024).
Navigating market uncertainty with recruitment flexibility
Lastly, increased government borrowing may contribute to market volatility, making it essential for firms to adopt flexible recruitment strategies. Core-Asset’s Associate Director, Emma Hogg, suggests that firms focus on diversified hiring for stability: “In uncertain times, hiring for flexible, adaptable roles can provide firms with resilience. Diversifying talent portfolios ensures that firms can navigate fluctuating market conditions.” By focusing on cross-functional skills, firms can better position themselves against economic instability (Hawksford, 2024; Financial Times, 2024).
The budget has also placed a spotlight on umbrella companies, increasing scrutiny around compliance and transparency. This shift underscores the importance of clarity in recruitment and accountability in the supply chain. Hogg advises, “By working with reputable umbrella companies and implementing due diligence protocols, firms can ensure compliance while offering contractors a fair and consistent experience.”
Government discussions around a potential “statutory due diligence regime” reflect growing concerns over non-compliant umbrella practices that impact contractors’ tax contributions and firms' reputations (REC, 2024). Such a regime, if implemented, would likely drive recruitment consultancies to strengthen partnerships with fully compliant umbrella providers. This approach helps firms safeguard their operations and reputation by avoiding the financial and legal risks associated with non-compliance in the umbrella company market (Contractor UK, 2024).
Recruitment as a strategic advantage in changing times
The Autumn Budget 2024’s adjustments aren’t just fiscal challenges; they’re also powerful signals for evolving recruitment needs. Emphasising adaptable roles, regional incentives, and digital expertise allows firms to not only navigate these changes but also to strategically strengthen their talent pool. By focusing on flexible, tech-forward, and location-savvy hiring, companies can turn these policy shifts into opportunities for building a resilient workforce equipped to thrive in a dynamic landscape. This approach to recruitment is an investment in future success.
References
Core-Asset Consulting. (2024). Scottish financial services experts forecast economic headwinds. Core-Asset Consulting.
KPMG UK. (2024). Autumn Budget 2024: Our Summary and Analysis. KPMG.
Unbiased. (2024). UK Autumn Budget 2024: What to Watch For in Financial Advising. Unbiased.
Hawksford. (2024). UK Autumn Budget 2024: Navigating New Challenges. Hawksford.
Financial Times. (2024). Business and Wealthy Bear Brunt of £40bn Tax Increases. Financial Times.
Computer Weekly. (2024). Autumn Budget 2024: Chancellor emphasises importance of tech for UK growth. Computer Weekly.