Licensing would be good for recruiters who want to sell their business, according to Kevin Barrow (pictured), a partner at law firm Osborne Clarke.

Speaking at the Association of Professional Staffing Companies (APSCo) interactive debate held in London yesterday, Barrow said: “It’s something that looks good to institutional investors.”

Licensing could also make it easier for lenders to lend to staffing companies, said Barrow. And it could help to alleviate the growing problem of invoice discount finance companies being unwilling to lend to recruiters. “It may improve their feeling of warmth to staffing companies,” he said.

A UK licence that was also valid throughout Europe would also be less of an administrative burden for staffing companies that want to operate abroad than the present arrangement, where they have to obtain a different licence from each individual country, added Barrow.