The government must align its ambitions for skills, artificial intelligence and job creation with the costs and regulatory pressures facing employers, the CIPD has warned following the Autumn Budget.
The professional body for HR and people development welcomed the absence of major unexpected measures, alongside support for apprenticeships and research into AI’s impact on employment. However, it said a more coordinated approach was needed to turn the Chancellor’s pro-business commitments into practical improvements for organisations and workers.
Neil Carberry, Chief Executive of the CIPD, called for closer engagement with employers, warning that policies intended to encourage growth risk being undermined by decisions elsewhere in government.
Employers Need A Joined-Up Growth Strategy
Responding to the Budget, Carberry 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.”
Apprenticeship Support And AI Research Welcomed
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.”
Warning Over Employment Regulation And Implementation
The CIPD also called for more discussion between government and employers about how policy changes will operate in practice.
Carberry said:
“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.
“Despite the consultation closing only recently, employers will be concerned about the pace at which the Government is moving on job advert pay. Addressing legitimate employer concerns should be part of the next stage.”
Source
CIPD — Government must join the dots across skills policy, employment costs and AI to live up to Healey’s pro-business promise:
