Chancellor’s Spring Statement fails to address key workplace challenges being faced by employers, putting economic plans at risk says CIPD

The Government must do more to create employment opportunities and back British businesses, according to the CIPD, the professional body for HR and people development. CIPD’s head of public policy Ben Willmott comments:  

“While the Chancellor highlighted welcome support for key sectors such as defence and plans to boost investment in infrastructure and housing, there was no recognition of the need to provide more support for employers. 

“The Government has been quick to add costs and regulation to businesses through national insurance hikes and the Employment Rights Bill, which have created clear headwinds for employers in terms of additional costs and implementation challenges. We now need to see the Government back businesses by setting out how it will work with employers to address these challenges and boost productivity, as together these measures stand to undermine business investment in workforce training and employment, as CIPD data has shown. * 

“It’s crucial that the Government continues to consult with employers on key measures in the Employment Rights Bill still to be finalised to ensure they don’t have the effect of increasing the cost and risk of employing staff, which will also undermine efforts to Get Britain Working. If the Government wants to see more people in work, then 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. 

“We also need a clear implementation plan for the Employment Rights Bill to ensure that employers are able to comply with the raft of new regulations, and this must include additional funding for ACAS and for the employment tribunal system to manage the likely increase in claims. 

“On skills, 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 also need 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.”

*Recent CIPD data – as flagged in Mel Stride’s response to the Chancellor’s statement - found that almost a third (32%) of employers who expect employment costs to increase as a result of increases to employer National Insurance contributions (NICs) and the National Minimum Wage, plan to reduce their headcount through redundancies or recruiting fewer workers.