UK spending review needs stronger focus on workplace performance
The CIPD calls on government for stronger links between skills policy and business support – to tackle recruitment challenges and boost economic growth productivity
The CIPD calls on government for stronger links between skills policy and business support – to tackle recruitment challenges and boost economic growth productivity
The CIPD has responded to the UK Government's latest spending review, highlighting the need for greater ambition and a joined-up workforce strategy. We're calling for a more integrated approach that tackles the UK’s productivity challenges by focusing on improvements to skills, business support, employment relations, occupational health and labour market enforcement.
"Today’s plans provide a welcome boost for some key sectors, but overlook some of the biggest challenges facing business across the economy – including the need to improve the skills and health of the workforce and accelerate the wider adoption of new technology and management best practice.”
The Chancellor’s commitment to investing in training and apprenticeships for young people is welcomed, but there’s an urgent need for Skills England to set out how it will support employers to invest more in apprenticeships and in upskilling their existing workforce. This is necessary to tackle skills shortages and support growth beyond the proposed industrial strategy sectors.
To address skills gaps effectively, we're advocating for an Apprenticeship Guarantee for all 16-24 year olds, alongside enhanced financial incentives for small employers to hire apprentices. This approach would help organisations build the capabilities needed for future success while supporting young people into meaningful careers.
The Employment Rights Bill (ERB) represents the biggest changes to employment rights in a generation – but there was a conspicuous absence in the Chancellor’s speech of any additional resources for Acas or the labour market enforcement system, which will be needed to help businesses implement new laws and to take pressure off the employment tribunal system.
“Smaller businesses in particular will need access to support and clarity when new regulations are coming into force - to ensure they don’t fall foul of the new laws.”
We're calling for a progressive labour market enforcement strategy that includes:
While the Government's focus on high-potential sectors like creative industries and financial services is welcome, concentrating investment solely on these areas won't address regional productivity disparities. These sectors are largely London-centric and won't tackle inequality across the UK.
We're urging investment in 'everyday' sectors that employ millions of workers nationwide. This broader approach is essential for powering growth and creating opportunities across all regions.
Government reform is crucial to addressing these systemic workplace challenges, and we'll continue to engage with policymakers, as the voice of the people profession, to champion the changes needed.
In the meantime, people professionals are uniquely positioned to drive change from within organisations. The skills shortages and regulatory changes ahead will require strategic thinking and professional expertise to navigate successfully.
Consider how your organisation can:
Our Profession Map can help you assess and develop the capabilities your people team needs to lead these conversations in your organisation. You can also explore our knowledge hub for practical advice and keep up to date with our latest insights on the changing world of work.
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