REC welcomes business rate relief for staffing firms

The Recruitment & Employment Confederation (REC) has welcomed a business rate discount for employment businesses but has also warned against continuing to charge Apprenticeship Levy on furloughed workers.

The government has confirmed that employment businesses are eligible to apply for the business rates retail discount. Recruiters are eligible for the scheme, whether their office is now closed or not. 

“The latest guidance is very welcome,” said a REC statement. “The REC asked for this relief for employment business…submitted to government a few weeks ago.”

“This will make a real practical difference to the cash flow of employment businesses as they navigate through this crisis,” said REC CEO Neil Carberry. “Expanding Statutory Sick Pay to cover business with more than 250 employees is the extra step we need to steady the jobs market and protect businesses.”

However, Carberry added that it was “disappointing” that the government had decided that businesses should continue to pay the apprenticeship levy while at the same time furloughing workers on the Job Retention Scheme. “We urge the government to re-think this decision as a matter of urgency,” he said.

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