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30 Winter 2022 PUBLIC AFFAIRS UPDATE T he Westminister machine is resuming after a period of great national upheaval and uncertainty following change in Head of State and the Government. With the party conference season over for another year, perhaps it is a good time to re ect on priorities a ecting the hire sector. e Autumn Statement and Medium Term Fiscal Plan from the Chancellor on 17th November will be a signi cant event for businesses and individuals. It is in-part to correct the damage from the previous Truss administration’s mini-Budget, but also to rebalance national borrowing, public spending and taxation. No doubt, the implications will be felt for some time ahead. e economy is at the top of the list and the recent ‘mini-budget’ sparked huge market turbulence with corresponding increases to both interest rates and in ation, and decreases in share prices and the Pound. In ation and interest rates both have a signi cant impact on the business environment, and the hire sector is not immune to this. CONSTRUCTION IMPACTS Construction in ation has been running at a higher rate than CPI for some time and this has resulted in escalating costs, project contingencies and the search for savings. Added to this pressure is the unprecedented spike in energy costs for businesses and households alike. e Government scheme to reduce bill costs for business will run for six months and there will be a review to determine those sectors needing longer-term support. e measures, which have been reported in the HAE EHA newsletter, include nancial support for those with o -grid energy. ere is also likely to be renewed pressure on central and local government budgets, not just because of in ation, but also the Government’s intention to reduce the overall level of state spending in relation to GDP. is may result in some projects being scaled back or even rescheduled. SKILLS PRESSURES e skills gap usually appears in the top ve business concerns and this is no less a pressure for the hire sector. Investing in people in critical to our future as a sector, but lling existing vacancies is ever challenging. Looking at attracting people into the sector from a wider pool of candidates than traditionally is the case will prove a necessary reaction to help reduce sta ng gaps and bring in new talent for the sector. BUSINESS CRIME Business crime is not letting up and trends are showing a marked increase in theft and fraud levels. While some theft is opportunistic, there is increasingly a worrying connection to organised criminality and the cybersecurity agenda is Rising interest rates and challenges to the economy have repercussions throughout industry.