CIPD: Initiatives may not be enough
Tue 25 Nov 2008
The Chartered Institution of Personnel Development has warned the Chancellor's pre-budget initiatives may not be sufficient to save jobs.
The chancellor Alistair Darling announced he is to cut Value Added Tax by 2.5 per cent and launch a £1 billion small business finance scheme.
John Philpot questioned the initiative: "Even if the chancellor's slightly optimistic growth forecasts are correct, his own expectations of a slowdown means job losses are certain to mount next year."
Dr Philpott is concerned the deal will actually worsen the situation as "there is also a real danger that this budget may do as much to slow medium-term jobs growth as it does to slow short-term job cuts," he said.
The chancellor has pledged more than £225 million for training and advice services but increased national insurance contributions for some firms.
The Trades Union Congress welcomed the announcements, although its general secretary, Brendan Barber also had some words of warning.
He said they did accept "that there are easy efficiency savings that can be achieved without damaging public services".
Despite an increase in the unemployment rate Randstad employment bureau has a wide range of jobs on its books.
