Describing the Emergency Budget as an ‘enterprise-led recovery’, Edward Winterton (pictured), recruitment finance spokesman for Bibby Financial Services, was “encouraged to see that it may bring about positive changes within the industry”.

“It represents a real opportunity for the recruitment sector. By increasing small business rate relief from October, 500,000 small firms will enjoy a tax reduction, a move that will help to ease financial pressure and allow for potential expansion.

“The Chancellor’s decision to support start-up businesses outside London and the South-East by offering them a £5,000 National Insurance break for their first year of trading will help to create jobs in regions across the UK where there has been recent stagnation.”

However, he warned against recruiters becoming complacent and cautioned: “The reality is that the country is in hugely difficult economic times and maintaining a healthy cash flow can reap considerable benefit. Firms should be identifying where cash is tied up now to spot potential ‘bottlenecks’ and act to reduce their impact.”

Recruiter will be investigating those recruitment agencies which have gone into administration over the past quarter in a News Analysis for the next issue, 7 July.