BDO Comments on Summer Statement

Date: 08/07/2020
Author: BDO LLP
Company: BDO LLP

Commenting on today’s statement, Ed Dwan, partner and head of BDO LLP in the North West, said: “The Chancellor has placed a firm focus on jobs and creating employment opportunities for young people. The “Kickstart” placement scheme” is an interesting way to re-think entry level roles by subsidising work placements for those who are 16-24 in a very challenging jobs market. Individuals will receive around £5,500 from the government over six months and businesses are set to get £1,000 for each placement. When we asked business leaders “what should be the top priority Government spending until 2025?”, 72% agreed that boosting businesses and jobs was where the emphasis should be placed. 

“Somewhat conversely, only 2% felt education and training should be prioritised. This suggests that for a work placement scheme and traineeships to be truly effective, businesses will need practical support as well as funding to get the buy-in which will bring its intended benefits to life. It can’t be underestimated the pressure business owners have been under in recent months to protect jobs and their future. Many mid-sized businesses are already stretched. Running quality placements and traineeships which add real value is time and resource intensive and the Chancellor is asking businesses to take on as many kickstarters as possible. That said, with the right government support, strengthened links with education and effective regional and cross-sector collaboration, this scheme could be a much-needed intervention for the next generation of employees and the businesses which have the potential to create future jobs.”