The CIPD urges the UK Government to outline clear plans to boost investment and productivity as Autumn Budget raises employment costs for businesses
The CIPD’s response to the Budget highlighted concerns that the Chancellor had further raised employment costs for business while failing to articulate how it planned to encourage growth and investment and boost productivity across the economy. We highlighted the need for additional measures to boost growth and support businesses, particularly in light of strong headwinds to recruitment and investment in workforces.
Employers now face higher labour costs, including an increase in the National Minimum Wage for young workers. While this is good news for lower-paid workers, it risks further reducing job opportunities for young people, at a time when long-term unemployment for young people is at a ten year high.
We welcome the UK Government’s support for key high-growth and green energy sectors. But many organisations outside of these priority areas still lack the backing they need to develop skills, strengthen capability and improve productivity in critical roles.
And, with the Employment Rights Bill still taking shape – and a future cap on salary sacrifice for pensions to consider – employers are facing a level of uncertainty that will risk further undermining employment growth.
“Employment costs have increased in the past year, but there’s still no coherent plan from the Government on how it will work with employers to improve productivity across the economy, help businesses invest in skills and support technology adoption.”
Against this backdrop, the people profession has a real opportunity to demonstrate its ability to lead organisations through change and find smarter, more sustainable ways to grow.
People teams can play a central role in helping organisations focus investment where it adds the most value, strengthen roles that drive performance and create opportunities for younger workers.
As your trusted career partner, we’ll be by your side every step of the way to make sure you can seize this opportunity with confidence.
Through updated guidance, practical tools and professional development opportunities, we’ll help you navigate the uncertainty ahead. And by representing your voice with policymakers, we’ll help shape the conditions employers need to build skills and drive productivity.
“The CIPD will continue to engage closely, consulting with our members, and to help develop the guidance and support businesses will need to prepare for the many regulatory changes coming over the next couple of years.”
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