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.” 

Ben Willmott, Head of Public Policy, CIPD

Apprenticeship reforms could unlock potential

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.

 

Businesses need more support to implement Employment Rights Bill

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.”

Ben Willmott, Head of Public Policy, CIPD

We're calling for a progressive labour market enforcement strategy that includes: 

  • More resources for Acas to support SMEs 
  • Increased numbers of labour market enforcement inspectors 

 

Industrial strategy must address regional inequality

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.

 

What the spending review means for people professionals

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: 

  • ensure it has a long-term workforce planning strategy that helps the organisation respond to the rapidly changing external landscape 
  • build internal skills and capabilities to maximise the contribution of talent and improving productivity and flexibility 
  • review practices to ensure that people want to stay and thrive within the organisation, taking pressure off recruitment need in a challenging market  

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 

Explore our related content

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CIPD consultation response: Spending Review 2025

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About
the CIPD

Championing better work and working lives

At the CIPD, we champion better work and working lives. We help organisations to thrive by focusing on their people, supporting economies and society for the future. We lead debate as the voice for everyone wanting a better world of work. 

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