Why the speech today? Rachel Reeves is desperate to reassure businesses suffering as a result of her Budget decisions which included putting up National Insurance, which increases the cost of employing people.
In just one example, he’s the latest warning from the British Chambers of Commerce.
Jane Gratton, Deputy Director Public Policy at the British Chambers of Commerce said: “The full impact of the changes to national insurance and the minimum wage, announced at the Budget, won’t be fully seen until later in the year. However, the warning lights on recruitment, employment and training are already flashing.
“Our latest survey paints a worrying picture of weak workforce growth, persistent hiring difficulties and cuts in workplace training. It also revealed that 55% of firms are planning to put up prices, with labour cost the main driver.
“To grow the economy, we need businesses and the workforce to thrive. Government must ease the cost-pressures on firms so they can invest in people. Working proactively with employers to tackle the long running skills crisis is likely to become even more important in the months to come.”