Spring Budget 2023 Response – The Potential Impact on Field Service
On March 15th, Chancellor Jeremy Hunt delivered his first Spring Budget, accompanied by a complete financial statement from the OBR.
The UK is predicted to avoid a recession in 2023, and the Chancellor is now intent on delivering the government’s growth plans. Jeremy Hunt announced a raft of new measures confirming plans to extend select business tax reliefs, direct funding towards the levelling up agenda and targeted measures on childcare and pensions to encourage more people back into the workforce.
Totalmobile’s own Rob Gilbert, Managing Director of Commercial & Logistics, and Chris Hornung, Managing Director of Public Service, took time to reflect on how they see the budget affecting their market sectors below:
Rob Gilbert, Managing Director of Commercial & Logistics
“(Jeremy) Hunt says that this is a budget for growth, and actually, it might just be the lifeline that our transport and logistics firms so desperately need. Freezing fuel duty for another 12 months should help keep Britain’s transport and logistics firms trucking for another year and will also help reduce inflation. This, combined with fuel prices slowly starting to come down at the pumps, will provide some much-needed light relief to what has started as a really challenging year for so many".
“However, with one hand he gives, and with the other, he takes away with a rise in corporation tax to 25%. The UK is already currently lagging behind other nations in terms of both productivity and innovation. This will be a harsh blow to private sector logistics companies already struggling to balance the books with wage inflation, industrial action and rising energy bills.”
Chris Hornung, Managing Director of Public Service
“It might have been billed as a budget for growth, however, there seems to be limited support for public servants on the surface. For example, there is limited information about investment across the public sector, be this with pay increases or addressing working conditions. Many areas, such as the ambulance service and nursing, face severe challenges that still need to be addressed".
“Pension tax reform alone cannot stop skilled staff from leaving in droves. A decade ago, the percentage of paramedics leaving their job in the UK was 4.8%. That number has now jumped to 10.3%. Not only is this simply disheartening, but it’s creating a serious issue for these services”.
“We need to see tangible changes to how these areas are run and provide better experiences for those currently working in the public sector. For example, reducing administrative tasks and back-office duties only serves to cause a backlog for the general public and frustrates the staff who are merely trying to do the job they are dedicated to”.
“Investment in the public sector’s digital transformation journey was also missing. It may take more capital in the short term, but in the long term will lead to shorter wait times, easier scheduling, and greater retention of staff”.
