The chief executive of Hays has attacked the government’s plans to abolish the VAT staff hire concession.

Despite lobbying by the recruitment sector, including the Recruitment and Employment Confederation, the change still looks likely to go ahead on 1 April.

Alistair Cox told journalists, following the announcement of Hays’ half year-results: “For a piece of legislation that in theory saves a relatively modest amount of money, the destruction that it will do  to  jobs in the temp industry, and therefore to a loss of jobs and tax revenue, means we think this piece of legislation is ill-timed and badly thought out and effectively a tax on jobs.

“There is still time for the government to change its mind. If the government doesn’t change its mind from an industry point of view it’s pretty clear that between 100,000 and 150,000 jobs will be lost. It doesn’t seem to be a particulalrly clever time to implement it.”