For businesses hiring into professional, commercial and specialist roles, the impact of the Budget is less about headline reforms and more about long-term workforce decisions.
Wage pressures are moving through the whole market
From April 2026, the National Living Wage will rise to £12.71 per hour for workers aged 21 and over. While this most directly affects lower-paid roles, it also has a knock-on impact across pay structures.
For many employers, this means:
- Reviewing salary bands to maintain progression and pay differentiation
- Managing internal equity between junior and mid-level roles
- Being more deliberate about where salary increases deliver the most value
Even in professional environments, wage floors influence broader reward strategy.
Employer decision making is becoming more deliberate
With tax thresholds remaining frozen and operating costs increasing, many organisations are taking a more measured approach to recruitment. Rather than expanding teams quickly, employers are focusing on:
- Hiring for critical capability
- Reducing turnover in key roles
- Strengthening leadership and specialist functions
This is leading to fewer, more considered hiring decisions, with greater emphasis on long-term fit.
Candidates are prioritising stability and progression
As pay increases are partially absorbed by tax and cost pressures, many professionals are placing greater emphasis on:
- Career development and clear progression
- Benefits and flexibility
- Long-term security rather than short-term salary moves
Well defined roles and transparent progression pathways are becoming increasingly important in attracting and retaining talent.
Skills shortages remain the defining issue
The Budget does not directly address skills shortages, particularly in specialist and senior roles. Competition for experienced professionals therefore remains strong, placing a premium on adaptable skills and realistic hiring strategies.
Recruitment as a strategic function
In this environment, recruitment is increasingly viewed as a strategic business decision, not just a response to vacancies. Employers are seeking insight around market conditions, salary benchmarking and candidate expectations.
How Anna Maher Recruitment can help
At Anna Maher Recruitment, we take a consultative approach to recruitment, supporting businesses and candidates in navigating a changing labour market.
By combining market insight with a people-led perspective, we help organisations make confident hiring decisions and support professionals in finding roles aligned with their experience and ambitions.