As businesses across the UK anticipate the impacts of the government's 2024 Autumn Budget, unveiled on 30th October 2024, many are focusing on the critical role of training for their workforce. The budget, which introduced significant tax increases aimed at generating an estimated £40bn for the UK Treasury, has raised concerns particularly among members of the Lifting Equipment Engineers Association (LEEA).
One of the most prominent measures in the budget is the increase in National Insurance Contributions for employers, escalating from 13.8% to 15% effective from April 2025. Meanwhile, the earnings threshold for these contributions will be slashed from £9,100 to £5,000. Additionally, the minimum wage is set to rise by 6.7%, elevating it to £12.21, which could further strain financial resources within companies.
In light of these changes, the Confederation of British Industry (CBI) has indicated that while smaller businesses may benefit from an increase in the Employment Allowance from £5,000 to £10,500, the overall tax rise will present challenges for many companies. Some businesses are reportedly forecasting heightened costs of up to £30,000 annually due to the budget measures, prompting a reassessment of internal budgets to identify potential savings.
LEEA members have voiced apprehensions regarding the financial burdens imposed by the budget. There is a prevailing concern that training expenditures, which are often prioritised for reduction during times of financial constraint, may suffer as businesses consider cuts in expenditures to balance their books. The lifting industry, crucial for the operational efficiency of the UK economy, is already grappling with skills shortages, which require sustained investment in training to foster the necessary skills.
With over 90% of workplace accidents attributed to human error, LEEA asserts that training is not only an essential investment for operational efficiency but also critical for ensuring safety within the sector. "Can you afford not to train?" is the question posed to industry stakeholders who are urged to consider the implications of diminished investment in employee education.
In response to evolving industry demands, LEEA continues to develop a diverse range of training options, offering both digital and in-person courses to accommodate the various needs of its members. New courses such as ‘End User Guidance’ and ‘Introduction to Lifting Equipment’ have been introduced to assist professionals in their Continued Professional Development (CPD). Furthermore, LEEA is advancing its 'Academy 3' curriculum, promoting a vision of an accident-free industry.
The budget also earmarked £950m for skills capital to enhance college infrastructure and allocated £300m to support the further education sector next year. Additionally, the government announced a revised plan for the Lifelong Learning Entitlement (LLE), set to launch in January 2027, which aims to simplify funding for adult education and training.
Furthermore, a significant investment of £40m is set aside for reforming the Apprenticeship Levy into a more flexible Growth & Skills Levy, allowing businesses the freedom to allocate funds toward a broader range of accredited training programmes. LEEA plays a supportive role in promoting the Lifting Equipment Technician apprenticeship, which acts as a pathway for more advanced training opportunities.
In summary, the current economic environment presented by the new budget demands careful navigation by UK businesses, especially within the lifting sector, where training is indispensable not just for compliance and safety but also for ongoing industrial innovation and efficiency. As companies adjust to the new financial realities, the importance of worker education remains a pivotal consideration in their long-term strategies.
Source: Noah Wire Services