Government must do more to develop skills, boost employment and back British business, says CIPD
Spring Statement fails to address key challenges faced by employers and rising employment costs stand to undermine economic growth
Spring Statement fails to address key challenges faced by employers and rising employment costs stand to undermine economic growth
The CIPD has issued an urgent call for greater government support for businesses to create employment opportunities, after the UK’s Chancellor failed to recognise the challenges facing employers in today’s Spring Statement.
We recently warned that additional costs and regulation – in the form of National Insurance hikes and the Employment Rights Bill – look set to undermine business investment in workforce training and employment.
Continued consultation with employers and the people profession will be key to ensuring that new legislation does not undermine efforts to ‘Get Britain Working’ by increasing the cost and risk of employing staff.
“If the Government wants to see more people in work, there must be jobs for them to go to. It’s important that new regulations don’t deter employers from hiring staff, especially younger people and those that might need more support at work.”
The Chancellor highlighted support for key sectors such as defence and plans to boost investment in infrastructure and housing, but did not address the need to provide more support for employers – particularly around investment in skills development and compliance with new legislation in the Employment Rights Bill.
We have consistently called for a clear implementation plan for the Employment Rights Bill, to ensure that employers are able to comply with the raft of new regulations. This must include additional funding for ACAS and for the employment tribunal system to manage the likely increase in claims.
We’re also urging the government to back recommendations that come from the Keep Britain Working review and work with employers to keep people healthy and in work. For example, by improving access to occupational health support for SMEs.
Improving the skills of the workforce is one of the most important things a government can do to address employability and improve the economic outlook. We have been urging the UK Government to take more action on skills for some time – and have been engaging regularly with relevant ministers and civil servants to share evidence and insights from the people profession.
We have long argued that the government’s focus on high-growth sectors is too narrow, calling for an industrial strategy that covers every part of the UK economy. We need to see measures that will benefit individuals and employers in the everyday economy sectors that employ millions of people across the UK. For example, fast-tracking consultation on the new Growth and Skills Levy to help employers invest in training their workforces to tackle skills shortages and support technology adoption.
We’ve also called for an apprenticeship guarantee for young people aged 16-24, to address the collapse in apprenticeships for young people and to give them a strong foundation to working life.
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