Just when you thought it couldn't get any worse, I hear news that the Government is set to remove the Staff Hire Concession, in effect forcing the providers of temporarylabour the charge VAT on not just the agency fee, but also the wages of the staff. Hardest hit will be the public services, who cannot reclaim the VAT. In effect the cost of agency cleaners for the NHS just went up by 15%. This robs both in-house and contracted out service providers of the short term flexibility that agency workers can provide. 150,000 jobs are potentially on the line.
The Evening Standard reckons this ,move could mean the end of temps in London, putting 25,000 jobs in London at risk - the majority of these are women's jobs. I wonder what Harriet Harman might do about that. Does she even know about it?
The decision to do this was announced in last year's budget, but that was well before the recession started.
Theresa May should take this up and try to force the government to abandon its plans.