Recruiters from a variety of sectors are hopeful rather than optimistic over the government’s £200bn bank bailout.

Responding  to reports that the government is set to announce plans to underwrite £200bn of Britain’s banks’ bad debts and risky loans, Alan Hogg, director at hospitality recruiter Kerry Robert Associates, told Recruiter that he was positive over the move. “If it works  and the banks start lending again, this will be good for the hospitality sector.

“My suspicion is that we have not seen the end of this and there are a few more surprises around the corner.”

Kate McCarthy, managing director at retail recruiter McCarthy Recruitment, says: “I hope it does have an effect and banks start lending money to businesses that need it.

“I think the banks have been holding back on lending. Hopefully, it will mean that retailers which are struggling for cash flow rather than trade will be saved by this so that they will have the money to get in the right talent to drive that trade.”

Alison Hughes, director at HR recruiter Higher Talent, adds: “The government seems to be drip feeding these solutions; they have a slight effect and then we are back to square one. I am unsure whether it will have the required impact, because the other interventions haven’t succeeded. 

“I do not think it will affect HR as the HR market is pretty stable at the moment and I think it will stay that way.”