THE GOVERNMENT’S recently unveiled “Get Britain Working” plan, aimed at tackling unemployment with a £240 million investment, has sparked apprehension among small business owners who fear the reforms could inadvertently harm their operations.

The initiative promises to overhaul Jobcentres, expand NHS mental health support, and introduce a Youth Guarantee offering training and job opportunities for young people. While these measures are designed to boost employment, small businesses warn they could face unintended consequences.

Rising costs and competition

One major concern is the increased competition for talent. The focus on training and apprenticeships may lead to a more competitive job market, making it difficult for small businesses to attract and retain skilled workers. Larger firms with deeper pockets could easily outbid SMEs, exacerbating existing recruitment challenges.

Additionally, the anticipated rise in operational costs due to increased National Insurance contributions compounds the financial strain on small businesses. Many are already struggling with inflation and high energy prices, and these added expenses could force them to make tough decisions about staffing and growth.

Regulatory challenges

The plan’s emphasis on supporting people with disabilities and long-term health conditions may lead to new regulatory requirements for businesses. Compliance could become more complex and costly, diverting resources from core activities and stifling innovation.

Economic uncertainty

Despite the government’s assurances that the plan will unlock growth for all, many small business owners remain sceptical. The uncertainty surrounding these reforms may lead them to delay investments or hiring, potentially slowing economic recovery.

As the government pushes forward with its ambitious agenda, it faces mounting pressure to address the concerns of small businesses. Ensuring that these vital contributors to the UK economy are supported will be crucial in achieving the plan’s goals without unintended negative impacts.

THE UK GOVERNMENT has announced sweeping changes to tackle unemployment and economic inactivity with the launch of the Get Britain Working White Paper today (Nov 26).

Backed by £240 million, the reforms aim to achieve an 80% employment rate by addressing the root causes of joblessness, transforming Jobcentres, and improving mental health support.

The overhaul comes as stark figures reveal that 1.5 million people are unemployed, over nine million are inactive, and a record 2.8 million are out of work due to long-term sickness.

Tackling health and inactivity

With long-term ill health identified as a key driver of economic inactivity, the reforms will expand NHS mental health services and boost preventative healthcare.

An additional 8,500 mental health professionals will be deployed, while access to therapies and other support will reach 140,000 more people by 2029. Inactivity hotspots will see extra NHS resources to cut waiting lists and help people return to work.

Transforming Jobcentres

The outdated Jobcentre system will be replaced with a National Jobs and Careers Service, focused on helping people develop skills and build careers rather than managing benefit claims.

A £55 million investment will modernize Jobcentres, introducing advanced digital tools and personalized coaching services.

Liz Kendall, Work and Pensions Secretary, said: “To get Britain growing, we need to get Britain working again. Our reforms will break down barriers to opportunity, boost jobs and growth, and ensure everyone benefits from the dignity work brings.”

Youth Guarantee

The reforms include a Youth Guarantee, ensuring every 18-21-year-old has access to quality training, apprenticeships, or education.

The initiative is backed by £45 million and partnerships with organizations such as the Premier League and Channel 4. It will also revamp the Apprenticeship Levy into a flexible Growth and Skills Levy, creating new opportunities for young people in key sectors.

Local empowerment

Trailblazer areas, including South Yorkshire, the North East, and Wales, will pioneer the reforms, using tailored plans to address regional challenges. Local authorities and mayors will also receive funding to develop bespoke employment support programmes.

Disability inclusion

The government has committed to helping disabled people and those with long-term health conditions enter and stay in work. An independent review will look at how employers can better support these workers and reduce barriers to employment.

Government’s ambition

Prime Minister Keir Starmer said: “From the broken NHS to flatlining employment, this government inherited a country that wasn’t working. Today, we’ve set out a plan to fix it.

“We’re overhauling Jobcentres, fixing the NHS, and giving young people the skills and opportunities they need to succeed. Our reforms are about meaningful change, helping people into decent, well-paid jobs, and unlocking growth for all.”

The reforms, Kendall said, “put work at the heart of Britain’s renewal,” aiming to create a healthier, wealthier nation where everyone can benefit from the opportunities work provides.

The Herald understands these reforms could pave the way for a stronger workforce and economy, addressing years of stagnation and rising inactivity.

PEMBROKESHIRE COUNTY COUNCIL’S financial future is under scrutiny following an extremely critical report by Audit Wales, which warns of mounting risks due to the authority’s reliance on reserves and failure to address underlying budget pressures. The Financial Sustainability Review, published in October 2024, raises concerns about the council’s ability to deliver services and secure long-term financial stability.

The council’s decision to reduce the planned Council Tax increase for 2023-24 from 16.3% to 12.5% is highlighted as a key issue. Paragraph 22 of the report states:

“The revised 2023-24 budget was therefore balanced using reserves to fund the shortfall between income and expenditure. This has implications for the sustainability of the Council’s finances, as the approach does not address the underlying causes of the funding gap.”

Short-term fixes, long-term consequences

Audit Wales identifies several factors contributing to the council’s precarious position:

• Depleting Reserves: Reserve balances are projected to fall sharply, undermining the council’s financial resilience.
• Unaddressed Funding Gap: The Medium-Term Financial Plan (MTFP) for 2024-28 outlines projected deficits but lacks clear solutions to close these gaps.
• Low Council Tax Rates: Pembrokeshire has some of the lowest Council Tax rates in Wales, limiting revenue growth.
• Future Tax Burden: Reduced tax increases in the short term may result in steeper hikes in future years to recover lost revenue.
• Challenging Budget Decisions: The decision to suspend standing orders to amend the MTFP raises questions about governance and transparency.

Audit Wales warns that without a robust, long-term strategy, the council will struggle to prioritize funding and address the structural challenges threatening its financial sustainability.

Impact on residents and services

The report underscores the implications of the council’s financial approach for local residents and services. While reducing the tax increase may have provided short-term relief to taxpayers, it comes at the cost of further reliance on reserves and the potential for drastic measures in future budgets. These could include severe cuts to essential services or substantial tax hikes, placing significant strain on the community.

Additionally, overspending in key service areas adds to the challenges, as rising costs and demand continue to outpace available funding. Audit Wales emphasizes that the council’s reliance on reserves only delays difficult decisions, creating greater risks in the years ahead.

Call for urgent action

Audit Wales recommends urgent steps to develop a comprehensive financial strategy that addresses these issues and ensures sustainability. The council must reduce its dependency on reserves, identify alternative funding sources, and implement measures to close the funding gap.

Pembrokeshire County Council has yet to respond publicly to the report. Residents and stakeholders now await clarity on how the authority plans to address these critical concerns and safeguard the county’s financial future.

This report highlights the challenges local authorities face amid rising costs and limited income, placing Pembrokeshire under the spotlight as it navigates turbulent financial waters.