Labour's anti-business policies are sending British jobs abroad
There's a profound irony at play in Westminster today. A government that came to power promising to stand for British jobs has implemented a series of policies that are actively driving those very jobs offshore.
National insurance increases, the latest hike in minimum wage requirements, and increasing worker rights from day one present small and medium-sized business owners with a stark reality: adapt or perish. And increasingly, adaptation means looking beyond British shores for talent.
As a Director of an offshoring recruitment firm specialising in South African talent, I've witnessed this exodus first-hand. Since the current government came in July, we have seen 20 times the growth in enquiries and this has only grown faster since the anti-business budget on October 30th and then again since April. Over the past year, my firm has gone from seven to 70 people, placing over 750 South African employees in 145 UK firms. This exponential growth clearly demonstrates that businesses are diving in headfirst as a direct response to the increasingly hostile business environment in the UK.
Clearly, I am also guilty of profound irony. It is hard to complain about policies that have allowed my business to grow as quickly as it has. I am not complaining as a commercial being, but as a Brit, vested in Britain, I am worried for the future.
In that sense, what is particularly notable is the nature of the roles being moved overseas. They’re often entry-level jobs or roles designated for young people entering the workforce. In short, they're precisely the opportunities that should be available to the British workers this government claims to champion. When we offshore these positions, we're not just moving jobs abroad; we're exporting the very stepping stones that young Britons need to build careers and contribute to economic growth.
By hiring South African teams, businesses can reduce staffing costs by approximately 50 percent, while still accessing highly educated, English-speaking talent in a time zone just one hour ahead of the UK. South Africa's high unemployment rate means there's a vast talent pool of dedicated staff eager to work with UK companies.
The pandemic had already demonstrated that remote work was viable. Now, economic necessity is making it essential. When hiring an employee in Britain means paying more in taxes and national insurance while having less control over employment terms due to day-one rights, business owners are making rational economic decisions by looking elsewhere.
Business owners don't make these decisions lightly. Most would prefer to invest in local communities and develop British talent. But when faced with rising operational costs and diminishing margins, offshore recruitment becomes not just attractive but necessary.
Ministers might argue these policies protect the British workforce, but the reality on the ground suggests otherwise.
As we approach the one-year mark of this administration, business leaders are sending a clear message: money talks. Unless the government reconsiders its approach to business taxation and regulation, the flow of jobs overseas will only accelerate.
As someone witnessing this shift daily, I can only wish for a policy reset that recognises the fundamental role of small and medium businesses in creating the very jobs and opportunities this government claims to champion.
I am not hopeful. So in the meantime, we'll continue helping British businesses survive and thrive by connecting them with the talented professionals they need - wherever they may be found.
Alex Fenton is Director of The Legends Agency, an offshoring recruitment firm specialising in South African talent.
