Temporary city workers could find themselves out of employment if the Treasury goes ahead with the planned withdrawal of a tax concession for temps. The Association of British Insurers, among other groups, has urged the Treasury to reconsiders its plans to charge VAT to the wages of temp staff, which will affect businesses and employment levels in sectors that cannot reclaim VAT, namely banking, insurance, education, charity and healthcare. Martin Kaney, director of VAT services at RSM Bentley Jennison, said: 'Companies will reduce the number of staff and will have fewer people. 'It's going to have a major impact and the Treasury is underestimating this impact. It has a lot of explaining to do on why it claims this impact is so low.' The proposed move by the Treasury, which will come into force in April 2009, was sparked by the Treasury stating they have to change their concessions in line with European Union VAT law.