It would be fair to say that initial reaction to the Autumn Budget was mixed, with some commentators arguing that that raised tax burdens were overly onerous on their markets, while others called for greater levels of regulation to balance the economy. One thing that’s for certain, though, is that Chancellor Rachel Reeves’ announcement will have a significant impact on policy and public affairs skills demands, and will intensify competition for professionals amongst employers. But how will the budget affect the market, and what do specialists need to know to thrive in this evolving environment?

At a broad level, the budget announcement aimed to stabilise and revitalise an ailing economy, boost ageing infrastructure, and reduce inequality. The headline news for policy and public affairs specialists will likely be the rising business NI rates, which have risen from 13.8% to 15%, along with the introduction of the new employment allowance, which aims to reduce liabilities for smaller companies. Elsewhere, shifts to minimum wage rates and pension payments will also create additional areas of focus. And with the Office for Budget Responsibility (OBR) anticipating growth of 1.1% this year, and 2% next, various portions of the market will be looking to capitalise on any opportunities that arise.

Certain sectors will be, and have already been, impacted by the budget more than others. These include:

Healthcare and NHS

A key focus of the new Chancellor’s first Budget was to allocate funds to support a significant increase in healthcare investment, aimed at addressing capacity issues within the NHS and providing additional resources for social care. Finances have been earmarked for new healthcare infrastructure, whilst plans are also afoot to tackle waiting times, improve mental health support, and increase staffing across critical areas. Public affairs professionals in the healthcare sector will see their roles expand as they advocate for targeted funding allocations within their local constituencies or specific health areas, and policy specialists, particularly those involved with healthcare organisations, charities, and think tanks, will need to analyse and respond to these new initiatives. The funding increases also suggest a greater emphasis on public-private partnerships, which will create opportunities for professionals to influence discussions and ensure stakeholder alignment.

Energy

The new government has doubled down on its commitment to delivering the green transition, allocating funds to renewable energy projects, sustainable infrastructure, and energy efficiency initiatives. A crucial aspect of this budget was the establishment of new green financing mechanisms and incentives for businesses to invest in energy-efficient technologies. This renewed focus on boosting the green economy will require significant advocacy and a deep knowledge of already complex environmental regulations. Specialists in these markets will be required to interpret new sustainability mandates whilst communicating the importance of delivering changes to the public and relevant stakeholders. This will also require a need for identifying how funding allocations can be split amongst different regions, and factor the needs of different urban and rural communities

Business and tax

The Budget introduced several new tax policies aimed at boosting the economy and although there has been significant debate around rising business NI rates, there were also more popular initiatives, like favourable corporate tax rates for companies driving research and development. These measures are intended to encourage business growth and stimulate innovation across sectors. Changes in taxation will present a significant area of focus for policy and public affairs professionals, especially those representing corporate interests or trade bodies. These specialists will need to analyse the implications of tax shifts and communicate their impact effectively to business leaders, policymakers, and other stakeholders.

Of course, these are just a selection of the markets impacted by the new Government’s first budget and ultimately most professionals will find their roles adapt in one way or another in the coming months. With increased funding centrally allocated to multiple industries, and new policies that aim to stabilise the economy, the top professionals will be highly sought after to help navigate this evolving climate.

Policy and Public Affairs skills demand

The increased demand for expertise is one of several factors behind major public sector pay increases seen post-Budget. According to recent data from the CIPD, pay awards for public workers in Britain are set to overtake the private sector for the first time in four years driven, in part, by above-inflation pay rises confirmed by the Chancellor. These include the hundreds of professionals operating in policy and public affairs roles across central and local government, amongst several other institutions. Once the dust has settled in private industry, and employers have had a chance to adapt to this new environment, it’s likely that similar rises will follow here too. Salaries are also likely to be bolstered by the fact that, according to our recent Policy and Public Affairs Salary and Employment Report, one in three professionals in our specialist market are considering changing roles in the near future. In what remains a skills-short environment, many employers may have a fight on their hands to retain their top talent in a critical time in the political world, and may offer further pay rises as a result.

If you’re looking for a move or to recruit into your team in a market that’s newly ripe with opportunities for the best professionals, get in touch with our specialist team.

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