THE Budget’s tax raid on business is going to be challenging for all firms.
But the national insurance hike is an indirect tax on skills and training — the very things we need to fuel economic growth.
We know some supermarkets and factories may replace staff, who are suddenly much more expensive, with self-checkouts and automation.
But a lot of retailers and service providers rely on skilled workers, like our garage technicians or bike mechanics.
These workers have received hours, months or years of training.
But these jobs also provide a route to fulfilling work with the potential to earn more. And it’s a chance for younger workers to develop their skills.
Someone can start at a Halfords store earning £23,500 if over 21 but if they join our garage as a technician they can boost their salary by around £5,000.
This of course comes at a cost, but it’s one we want to keep investing in.
The problem with the Budget is the extra costs came out of the blue.
Halfords faces £23million of extra costs and £14million of this was the unexpected national insurance contribution changes.
We made £36million profit last year, so two thirds will be wiped out.
We’re fortunate we can manage this, partly due to scale, growth in market share and efficiency improvements.
But not every business can absorb these costs.
Many will be forced to cut back on training or even reduce staff.
This could lead to a skills shortage in critical sectors, from healthcare to hospitality.
We need measures that encourage businesses to invest in their workforce, not penalise them for it.
Let’s ensure that the road to economic recovery is paved with skilled workers, not burdened by short-sighted tax hikes.
The government’s NIC increase could have serious consequences for businesses that rely on hands-on expertise.
Jobs retread
Halfords is looking to increase the number of its apprentices who are over the age of 50[/caption]
HALFORDS wants to boost the number of its apprentices who are over the age of 50 — to help solve a growing skills gap in garages.
The company, which has 277 shops and 636 garages, has its own “Retyrement Plan” to encourage older workers to take restart their careers.
The retailer currently has 260 apprentices on its books who are on route to becoming qualified car mechanics, but wants to increase that tally.
Graham Stapleton, the firm’s CEO, said: “We want to bring more skilled people back into the workforce, particularly those who took a break during Covid and didn’t return.”
The overhaul of its garages and mobile vans has also been a gear change to attract more women into the profession.
Halfords’ 150-site revamp
Halfords is set to invest £14million at 150 of its sites[/caption]
DESPITE the Budget cost headwinds Halfords is to invest £14million at 150 sites to improve car repairs and services.
The investment will transform the pop-up canopies outside its stores where basic services such as wiper and bulb-fittings currently take place.
It is now rolling out permanent fixtures across five to ten sites a month.
It will mean its car technicians can do more detailed checks on vehicles and book them into Halfords’ garages straight away if more work is needed.
Halfords said sales had increased by 50 per cent at 30 trial sites that had the new fixture models, which it calls “Fusion”.
The garages have greater capacity while the stores have greater capacity and have been revamped.
CEO Graham Stapleton said: “We want to be a one-stop-shop for your car, and this way our technicians can spot the work that’s needed in a garage when helping our retail customers”.
160k work axe fear
ONE in ten retail jobs, equivalent to 160,000 workers, will be at risk in the next three years due to the Budget’s tax raid, claims the British Retail Consortium.
A separate survey shows the majority of firms (58 per cent) will change recruitment plans, and 54 per cent will up prices, according to the British Chamber of Commerce.
Its policy director Alex Veitch said businesses “are sitting on a powder keg of costs”.
Shifting Unilever of power
Unilever’s Argentinian finance chief Fernando Fernandez[/caption]
MARMITE maker Unilever has pushed out chief executive Hein Schumacher after less than two years in an effort to speed up its turnaround.
The Dutchman has been immediately replaced by Unilever’s Argentinian finance chief Fernando Fernandez.
It comes just two weeks after the multinational finally chose the Netherlands for its ice-cream unit spin-off.
Tellingly, chairman Ian Meakins said there was “much further to go”.
The board, he went on, had been “impressed with Fernando’s decisive and results-oriented approach and his ability to drive change at speed”.
Unilever had to realise benefits of its growth action plan “with urgency”, he added.
Analysts at Berstein contrasted Mr Fernandez’s “fiery and charismatic” character to his predecessor’s “understated” nature.
Investors, including activist Nelson Peltz, have been impatient for progress.
