iPhone app iPad app Android phone app Android tablet app More

Unemployment - Give Firms Money To Take On New Staff, Government Urged

Money Firms Take On New Staff

First Posted: 19/12/11 05:13 GMT Updated: 19/12/11 06:31 GMT   PA

Amazing
 Inspiring
 Funny
 Scary
 Hot
 Crazy
 Important
 Weird

The Government is being pressed to offer financial incentives to firms to take on new staff because a lack of confidence in the economy was said to be hitting recruitment.

A survey of 1,000 firms by Bibby Financial Services showed that one in three believed financial aid would help stimulate job creation.

The firms said they were keen to invest in more staff to build their business, but many complained of being stuck in a "growth trap" as they do not have the funds to recruit.

The greatest barrier to recruitment was said to be confidence in the economy, although concerns were also raised about the prospect of winning new business.

Edward Rimmer, chief executive of Bibby Financial Services, said businesses want to invest in new staff but needed support from the Government to make it possible.

"Businesses in the UK are in a growth trap where they want to invest in their firms, take on more staff and see significant growth going into 2012 after many hard years of cutting back.

"But those firms cannot make that step because they don't have the level of business needed, so they will remain at a stagnant level.

"If the Government stepped in, as previous governments have done in the past, and offered financial incentives for each new member of staff for instance, it would give the businesses that much needed support for real growth.

"It is clear from our survey that businesses want to grow but have come up against a number of barriers which the Government could act to remove. Unless these businesses can find ways to invest in staff we will not see the growth from small and medium-sized enterprises that the Chancellor is hoping for."

FOLLOW HUFFPOST UK POLITICS

The Government is being pressed to offer financial incentives to firms to take on new staff because a lack of confidence in the economy was said to be hitting recruitment. A survey of 1,000 firms b...
The Government is being pressed to offer financial incentives to firms to take on new staff because a lack of confidence in the economy was said to be hitting recruitment. A survey of 1,000 firms b...
Read more from Huffington Post bloggers:
Dave Prentis

Dave Prentis: Unemployment - The Government Continues to Ignore the Human Cost of Its Cuts

Warning bells should be sounding in Westminster in the run up to Christmas. While the government gears up for the recess and festive celebrations, hard-pressed families across the UK are wondering how they are going to put a turkey on the table this year. What a seriously bleak midwinter for the 2.64million now unemployed and the millions of low paid workers, suffering from pay freezes in the face of high inflation.

Filed by Chris Wimpress  | 
 
 
  • Comments
  • 20
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
Dibble
20 Fans
09:58 PM on 12/19/2011
Reducing taxes does NOT give everyone more money to spend. The retired, those who earn too little to pay tax etc do not get anything from tax reduxtion so they don't spend more. Tax cuts only benefit those paying a lot of tax who are the wealthy. You can't have it both ways. If you cut public spending then the private and public sector lose jobs and the unemployed don't have money to spend and don't pay tax.
Permalink  |
Dibble
20 Fans
09:52 PM on 12/19/2011
You must be joking. hey have relly lost the plot if they are sacking public sector workers at one end to save money then paying it to tax dodging private business at the other. If they don't create jobs or go bust will we get the money back? Will we buggery
Permalink  |
photo
whatapalava39
82 Fans
04:07 PM on 12/19/2011
What is the point of taking on new staff if there are no orders, its the same with training apprentices, where are the jobs at the end of it. We need massive investment in infrastructure the then unemployment will take care of itself, nothing can recover with constant cuts, Osbornes austery measures are prooving this.
Permalink  |
HUFFPOST SUPER USER
cynic123
70 Fans
03:28 PM on 12/19/2011
This does not get my vote. I refuse to give more so employeers can hire insurgents over our home grown workforce
Permalink  |
victorganderson
12 Fans
07:55 PM on 12/19/2011
Dont be stupid. Think Tory. Form a paper company and cash in.! I feel, sure , that Theresa May, will point you in the way of hiring foreign nationals. I have seen it happen locally here, within 40 miles of where I live , and made some enquiries..
It is only a slight blimp in their self serving time in office. I would wish, and vote for, for a total breakup of this UK. If these nonsensical, self serving, money grabbing politicians in Westmister, have difficulty understanding, or choose to ignore pubilc feeling it will be made, at a later date , their problem. ,In my opinion, it is only their own system of public control that allows them this freedom, to abuse the people of this country. I personally think , it is time for change.!
Permalink  |
lezerley
0 Fans
02:30 PM on 12/19/2011
What a good idea, I am sure that Sir Phillip Greed will welcome this as he has had a bad year.
Permalink  |
photo
whatapalava39
82 Fans
04:11 PM on 12/19/2011
He was clapping his hands at all the cuts, now he is closing 240 of his shops, be careful what you wish for next time Mr Green, i for one will never spend anything in your stores.
Permalink  |
richardwaymans
8 Fans
02:26 PM on 12/19/2011
you are right about the taxation, the strategies to reduce them and the heavy state borrowing, but china has a lower per capita income - except they save a lot more, we spend it on cheap goods they produce, and borrow money of the far east to fuel it. more debt in our economy than hard cash.

as everyone knows, we need a fundamental restructuring towards manufactured products, likely hi-tech would be the best, as well as the production of the relevant components here so companies don't have to move overseas. until we move away from propping up banks selling meaningless financial products on a form of legalised gambling we stand no chance.
incentivising our tradesmen and skilled scientists, engineers to stay in industry instead of searching for the lure of the city would be a start. pay those in the business what they deserve, then we'd build our own knowledge base without having to import it from elsewhere
Permalink  |
honestjohn202
11 Fans
01:02 PM on 12/19/2011
My advice to the budding businessman, if you have faith in your product, take a business plan to your bank manager. If enough of you try and fail,then go to your MP and campaign for a govt-funded commercial type enterprise bank. Meanwhile, back at the ranch, I beg that we do not expose our young workforce to the tyranical atmosphere of the shopfloor where others are struggling to keep a job. I've seen the treatment handed out to newcomers who, it would appear,rightly or wrongly, to represent a threat to those in work. NO ONE wants to train someone else to compete for their own job.
Solution:
(1) Set up industrial training centres staffed with experienced technicians (borrow from industry if necessary)
(2) The trainees will treat this as a proper job, going through ALL the similar procedures of employment.
(3) On SATISFACTORY completion, the candidate gets to take a recognised industrial board exam.
(4) We now have an experience workforce with others coming on stream.They wouldn't all be snapped up immediately, but at least they will be fully trained and ready to go as the economy picks up
(5) Don't put them back on the dole. We can't afford fully trained tradesmen sitting at home. Remember those potholes we call roads? What about school buildings that need rewiring and centres requiring a lick of paint and a bit of plumbing?
Feel free to improve on this list but PLEASE don't send these young lads to be humiliated!
Permalink  |
shanesps
7 Fans
01:48 PM on 12/19/2011
they have had programs like the one you propose since the 80's yts. yop. et. etc etc and all they achieve is manipulation of the jobless figures. if we did'nt keep giving billions to every other country year on year we would have the cash to invest, and we would'nt have to keep selling off our assets to foriegn companies, that along with immigration policies that allow floods of migrants here to then undercut the pay rate has helped the situation, and i speak from experience as a builder for 20 years in the 90's and onwards a steady stream of eastern builders came here and worked for as little as £20 a day instead of authorities stopping this they turned a blind eye net result london's tube train station renovation is mostly done by them and so was the olympics site there are now reports coming through the media of polish truckers working for £60 a week so the transport industry will be taken over warehouse is no different either talk to anyone you know who works in one i am sure they will tell you it won't be long before this country is called great britainski
Permalink  |
This comment has been removed.
Permalink  |Show replies(1)
This user has chosen to opt out of the Badges program
Mickey Mouse 1
There are no lies or deceit on a chess board.
180 Fans
11:11 AM on 12/19/2011
I don't think it's a good idea to give money to businesses to take on staff for a certain time period. When the time period ends, businesses are like to sack those staff taken on in order to qualify for more money to take on more staff!

A better plan would be to reduce taxes to give everyone more disposable income to spend to kickstart the economy.
Permalink  |
photo
carneliancrystal
Do I believe all the propaganda of course I do
129 Fans
03:23 PM on 12/19/2011
An even better plan would be to get rid of employment agencies, then firms would have to employ staff full time as apposed to paying agencies double or more than the hourly rate the staff receive. Then discarding them as and when they will the only winners are the agencies who dont give a damn about staff
Permalink  |
photo
HUFFPOST SUPER USER
mfa11e
Tell the truth ,regardless
196 Fans
03:43 PM on 12/19/2011
There are a few obvious reasons why firms will use emplyment agencies.If they dont like the staff they can get rid of them without having to go to court.They do not have to pay holidays nor do they pay if the staff goes sick.The firms can then ,if they choose later,to approach the worker and offer them a full time job if they think they are a good worker
Permalink  |
photo
HUFFPOST SUPER USER
mfa11e
Tell the truth ,regardless
196 Fans
11:09 AM on 12/19/2011
Firms already have this as an incentive.Some abuse the system by getting rid of staff once their period of payment cease and then recruit again to get the benefits.Some councils also give free rent and rates for 18/24 months for companies to move into their area to employ people.Some firms take advantage of this then once that period ends relocate to another area to get the same.Many years ago Singer did this in Lancashire then moved to Northern Ireland.They leave a trail of frustrated employees and councils,dont forget you as a taxpayer subsidise this legal but underhand behaveour
Permalink  |
kohl
64 Fans
10:59 AM on 12/19/2011
Yet another government (whether Tory or Labour) scheme to hide unemployment figures. So they give companies OUR money so that the companies can employ staff (at the lowest possible rates and virtually devoid of any honest employment protection). When government chooses to stop paying OUR money. Employers will drop their new employees like falling stones that is if they dont use the excuse to get rid of costlier and more experience staff and keep the cheap tat!
Permalink  |
Crimeboy
8 Fans
10:36 AM on 12/19/2011
Errrr... Wouldn't this just re-inflate the bubble, for it to burst again?
Permalink  |
This user has chosen to opt out of the Badges program
jmmcmkn
214 Fans
10:25 AM on 12/19/2011
If your a business with the work and can't aford to take on staff then let's face it you arn't much of a business and your bank is seconding the theory by not having any faith in your business sense otherwise it would lend you the money to expand. If you can't get the work you don't need the staff. Another waste of tax payers money.Why not spend the money on the sub prime loan industry while their at it?
Permalink  |
photo
ned222
25 Fans
09:53 AM on 12/19/2011
Britain’s politicians and bureaucrats simply do not understand how to produce a wealth generating economy.

High taxes and State intervention in everything is not the answer

Low corporation tax good for businesses to invest in your country.

Why China , Singapore, Dubai, and Hong Kong are so successful and in the case of Hong Kong and Singapore have a per capita income/ wealth per person one third higher than in Britain These countries also have good health education and welfare systems

Low direct taxes ( Most people on low incomes no tax , middle income low tax typically 7%, High income tax rate of 17/20%
Very low consumption based taxes ( typically VAT5%)
Very low or no corporation taxes.( typically 6%)
Very little government regulation or interference in Business or commerce.
Percentage or state spending typically below 20% of GDP.
Government borrowing typically less than 5 % of GDP

Why Britain and EU are unsuccessful and getting poorer with little wealth generation.
Very high direct taxes typically 20 to 50%
Very high Indirect consumption based taxes typically 17 to 25% with petrol often 70/80% tax rate.
High corporation tax 25 to 35%
Government regulation and interference in everything
Percentage of state spending 35 to 60% GDP ( Britain 56%)
Government borrowing 70 to 100% of GDP

Socialism delivers poverty Double Whammy of socialist policies in Britain and socialist EU
Permalink  |
shanesps
7 Fans
01:55 PM on 12/19/2011
you speak one hell of a lot of truth but you forgot to mention THE MOST IMPORTANT THING our rich elite get even richer whilst our poor depend evermore on a token gesture handout so that we feel grateful
Permalink  |