How The General Election Might Affect Job Hunting And Recruitment

Polling Station Secretlondon123

You may have heard; there is a general election coming very soon and all the parties are starting to reveal their policies. The period immediately before an election can be an uncertain one for businesses whilst they wait to see what changes may be coming their way. Depending on the results of the election, there could be a boost in the number of live vacancies being offered. It is looking unlikely that any one party will win outright, so things such as the following could become bargaining chips in any coalition negotiations.


Zero Hours Contracts

These are a hot topic at the moment and have been largely vilified. They are, however, an important tool in the jobs market that many employers and employees prefer to use. There is a concern though that they are exploited to the detriment of the worker. The Conservatives and Lib Dems want to ban exclusivity clauses. UKIP and the Greens want to ban them altogether and Labour want to ban them in their current form and replace them with contracts offering greater rights for the worker.


Travel and Subsistence Claims

At the moment one of the main advantages of using an umbrella company is that contractors are able to claim travel and subsistence expenses to reduce their tax liability. There is a consultation taking place to remove this facility. There is no time for any changes to be made in this parliament so it will be up to the next parliament to decide what to do with the recommendations. Should these expenses no longer be claimed, then it is widely expected for contractors to move from the umbrella model to a limited company model. What effect this will have on the umbrella companies remains to be seen.



There has been a call by some in the industry to reinstate the Employment Standards Office and regulate the recruitment industry through licensing. There is also an impression that the Labour party would look to introduce new legislation regarding the industry as a whole but it is not yet clear what that will be.


Jobs Creation

The Conservatives are promising 3 million new apprenticeships, Labour will offer a jobs guarantee for everyone under 25, UKIP will legislate for jobs to be offered to British workers first and the Green party are looking to create sustainable jobs, particularly within energy conservation.


Income Tax

The Conservatives are looking to increase the personal allowance threshold and increase the 40% rate threshold. Labour are looking to introduce both a 10% rate and 50% rate. The Lib Dems are looking to increase the personal allowance threshold and implement new rules to ensure the wealthiest pay the most tax. UKIP are looking to increase the threshold and add a 35% rate above the current higher rate threshold before 40% kicks in. The Green party could introduce a 50% tax for those earning £100,000.


The other risk is that if there is no outright winner, which is likely, businesses and individuals alike will have to wait for the outcome of coalition negotiations to see what remains of each parties manifestos. All will be revealed in May so watch this space.




Victoria Watkins is Office Manager here at Corriculo Ltd. After working as a Recruitment Consultant for 5 years she moved to Office Management for an IT consultancy 6 years ago. Victoria was one of the first members of our team and deals with all of our administration and accounts. Connect with her on LinkedInTwitter or Google+. Corriculo Ltd is not affiliated with any political party.


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