The Recruitment and Employment Confederation (REC) is lobbying government to overturn a decision to remove VAT staff hire concessions from next April.

Anne Fairweather, head of public policy at the REC, told Recruiter: "Our members are keen to seek further legal advice on the Chancellor's budget decision. We are determined to find a way forward.

"The budget decision as it stands will simply result in the thousands of temps who are engaged in the finance, charity and not-for-profit sectors finding themselves without work as the cost of their placement soars."