CSA's reaction to the Chancellor's Spending Review

Below is Chris Leslie's (CEO of the CSA) reaction to the Chancellor's Spending Review.

Spending Review statement:

“The OBR’s forecast of an economic contraction of over 11% this year and unemployment rising to 2.8 million underlines the challenge over the coming years. While debt levels may rise, the ability for some borrowers to sustain repayments may be strained. Collections agencies have shown tremendous forbearance throughout the course of the COVID crisis and will continue to do so. There are many who depend on funds being recovered – including small businesses and the taxpayer – and so if individuals can afford to make repayments it is in everyone’s interests that they do so. We hope that, beyond the period of regulated payment deferrals, payment plans can be based on the assessment of individual affordability.

“We note with interest that the Office for Budget Responsibility forecast a fall of over 14% in consumer spending in this financial year, but predict a recovery of 8.7% in 2021/22 and then over 11% in 2022/23. Consumer confidence will be integral to the health of the economy and credit markets generally.”

While the country looks to recover from the COVID pandemic and worst economic downturn for centuries, interventions from Government supporting consumers, businesses and the wider economy are more important than ever. Chancellor Rishi Sunak placed particular emphasis on learning and development investment in his one-year Spending Review which are of particular relevance to our sector.

On the training and employment support announced by the Chancellor, Chris Leslie said:

“The Chancellor’s £2.5bn additional investment in apprenticeship programmes is very welcome. The credit services sector is improving skills and staff capabilities each year and the new flexibility announced on transferring unspent apprenticeship levy funds to SMEs and extending the incentive for employers to hire an apprentice to the end of March 2021 are positive steps.

“The six month subsidy for young employees under the £2bn ‘ Kickstart’ scheme is due to deliver 250,000 new posts – and our sector is eager to play its part in this. CSA members have already responded positively to the Kickstart scheme, which can be followed by apprenticeships and supported with other training options for young people as they start careers in credit services. The CSA is offering to act as a ‘gateway organisation’ so that member firms not able to employ above the threshold of thirty placements directly can still access Kickstart at a more manageable level via their trade association. The CSA also offers a strong apprenticeships programme including in Credit Control and Collections, Compliance & Risk and Counter Fraud Investigation.

“Taken together with the new £3bn three year ‘Restart’ scheme overseen by the DWP aimed at supporting a million people back into work, we believe that our member firms will be keen to ensure their training and development plans work in harmony with these government programmes – and there will be more discussion about these opportunities at the CSA’s People Development Conference on 9 February 2021.”

CSA Apprenticeships

CSA Learning & Development Conference 2021

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