Yahoo Finance Chancellor’s VAT holiday throws a lifeline to ailing recruiter Staffline
Troubled recruiter Staffline saw shares fly higher on Wednesday after the Chancellor’s VAT holiday fuelled plans to funnel more of its temp workforce into under-stress sectors like retail.
The company, which has struggled with an accounting fiasco recently, normally recruits temporary staff for supermarkets and food manufacturing and is likely to be one of the big winners from the crisis as the sector cries out for more staff.
Chancellor Rishi Sunak’s VAT holiday, unveiled on Friday, will boost short-term cash flow. He has allowed companies to delay payment of VAT due between March and June until 2021.
Staffline did not put a figure on the VAT saving but it could be around £25 million which will be recycled into hiring activities.
Staffline has launched a website, Feed the Nation, to help fill temporary gaps at large companies like Tesco and chicken producer 2 Sisters.
During the busy Christmas trading period it typically supplies 75,000 extra workers into the retail sector. The crisis is likely to see similar figures.
