The CIPD believes measures outlined in the budget will help improve the efficiency of UK business and increase skill levels throughout the workforce.
John Philpott, chief economist at the CIPD, welcomed plans to improve training and research and development announced by Chancellor Gordon Brown.
Philpott highlighted proposals to introduce a working tax credit and new options to enable more employees to achieve at least two NVQs as particularly positive.
He also praised plans for employer-led initiatives on key skills as part of New Deal stage two and the further increase in the number of modern apprenticeships.
The CIPD backed the Government’s intention to extend the Enterprise Management Incentive Scheme and an increase in the tax relief.
The increase in maternity and paternity pay and the likely extension of tax credits to large companies for research and development were also supported by Philpott.
He commented, “The key now is to make sure that the Government and business come to recognise fully the role of improved people management and performance in meeting the UK’s productivity challenge, which CIPD research has shown impacts more on the bottom line even that R&D. The CIPD will make formal representations to the Government on this matter in due course.”