Policy meets SME
particularly SMEs. Luke Gusman, Director of 35-employee UK manufacturer Bermar, said there is no doubting the impact of higher NICs: “Although we’re actively growing thanks to herculean efforts by our team, I now have to explain why annual pay rises will be less because there’s only so much to go round. Issues such as increased NICs and minimum wage not only prevent growth by halting new recruitment plans but also thwart investment in existing employees. We desperately want to reward ambitious staff.” Martin Guildford, Area Director for Lloyds Banking Group, suggested business owners could think about different employee benefits: “There’s other schemes out there that could form part of a staff retention strategy. Salary sacrifice arrangements, for example, reduce NI liabilities for both employees and employers.” MP Jack Abbot was keen to address NICs directly: “I understand it’s a really tough ask, particularly for SME manufacturers. In response, I’d say we have to invest in public services. The UK has one of its sickest populations ever with
8 million on NHS waiting lists, which in turn impacts UK productivity. For a long time we’ve seen public services as a separate realm to business but I think that’s fundamentally wrong. Historically we haven’t invested enough in education or health to support the economy, but the money has to come from somewhere.” Level best Touching on education led neatly into the next topic: skills. Leading off here was Alan Burgess, Director in Engineering at host venue Suffolk New College. He is also a lead consultant for City & Guilds and helped co-write the T-Level programme. “The previous Government damaged the credibility of that qualification massively. Today, a lot of education centres are not even using the term T-Level, just Level III.” Some work on T-Level branding is clearly essential, accompanied by more explanation about the value to employers of a T-Level as a credible two-year technical vocational qualification that is designed as an alternative to A-Levels and apprenticeships. Another issue 15 Machinery & Manufacturing
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