Government must join the dots across skills policy, employment costs and AI to live up to Healey’s pro-business promise, says CIPD

On today's Budget, Neil Carberry, Chief Executive of the CIPD, the professional body for HR and people development, said:

"Overall, employers will be pleased that there were no big, unwelcome surprises in today's Budget, which will go some way to underpinning confidence in the economy. But there is much more to do to get the economy firing in a way that will help close the fiscal gap.

"The Chancellor showed that he understands the importance of employers and entrepreneurship in our economy - but that sentiment has to extend to all areas of Government activity. Many organisations are still recovering from a wall of Government-imposed costs they have had to absorb - or will have to in the next few months.

"The intentions outlined in this Budget also highlight the very real tensions at the heart of the Government's growth strategy. Policies on skills, AI and other job measures are seen in isolation and unrelated to decisions on employment taxes and regulation which too often pull in the opposite direction.

"We need the government to do the hard work and join the dots on some of the most pressing issues facing employers today. Without a joined-up approach, any measures announced today, will struggle to have the impact Government wants, and that employers and individuals need.

On specific measures announced, Carberry said:

"The £100m expansion of the Mayoral apprenticeship brokerage programme is a positive step to boost young people's job prospects. For employers, the decision to pause equalising the youth minimum wage with the adult rate will bring some relief to organisations already struggling with rising costs and could help protect hiring for young people. We look forward to further work in this area once the Milburn review reports later this year, and welcome the Chancellor's commitment to swift action. A coherent plan on this vital issue is essential. Funding to understand how AI will reshape jobs and industry also stands to be vital if organisations are to use AI safely and productively. The CIPD is ready to help on this."

On the broader context for employers, he adds that more conversation is needed between government and employers to ensure that policy measures stack up in practice:

"The Chancellor's pledge to give businesses breathing space by cutting red tape and providing support on energy costs and business rates will ring hollow for many employers as they brace themselves for the next wave of new employment regulation coming into force over the next year.

"Too much is being done to employers rather than with them, and the risks are piling up."

"For example, without sensible compromise, zero hours reforms threaten hundreds of thousands of flexible jobs, particularly for young workers. And union access rules come into force on Friday before the guidance employers need has even been finished, a recipe for costly disputes. We can't continue like this.

"The failed apprenticeship levy shows what happens when big policy changes relating to the workplace are made without employers in the room. We need much more engagement with employers and the business community moving forward."

Notes to editors

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