The Government will remove the VAT staff hire concession on April 1 ignoring pleas from the REC.
The removal goes ahead despite a prolonged campaign from the Recruitment and Employment Confederation supported by other leading organisations from business and industry.
The REC spearheaded a campaign to persuade the Treasury and HMRC to defer its implementation until after the worst of the economic downturn is over.
Kevin Green, the REC’s chief executive, said: “We are dismayed that even after producing evidence that up to 150,000 temporary jobs are at risk, the Government decided not to heed our advice to defer this tax on jobs.
“We have consistently drawn the implications of the concession’s withdrawal to the Government’s attention and highlighted the impact it will have on the supply of temporary staff to key sectors such as financial services, healthcare, education and charities.”

