Budget measures more sober than Budget message

Budget measures more sober than Budget message ñ No news is good news for HR professionals in todayís tough economic climate

Commenting on the Chancellor's Budget statement Dr John Philpott, Chief Economist, Chartered Institute of Personnel and Development (CIPD), said:

ìWhile a hit on Britain's drinkers is the most noteworthy feature of Chancellor Darling's first Budget his message on the overall economic outlook is less sober.

ìIf Mr Darling is to be believed, the UK is well placed to weather this year's global economic storm and set to sail into calmer waters from 2009 onward. Times will be tougher than of late ñ and worse than expected last autumn - but still good by current international standards and in comparison with previous tough times.

ìThe Chancellor had little scope to do much in this year's Budget and didn't do too much to disguise his limited room for manoeuvre. The Budget is broadly neutral - mildly expansionary in 2008-9 with a tiny give away clawed back in the following two financial years. Mr Darling is offering what amounts to small change to business - though the business community in general will be happier with the Chancellor this time around than they were with his pre-Budget report. There will, however, be cries of anguish from the drinks industry and the hospitality sector. With real incomes already being squeezed and consumers cutting back on spending it won't just be the patrons of bars and restaurants who are crying over their drinks tonight.

ìAlthough the Budget is broadly neutral it is redistributive, with poor families with children and pensioners the main winners ñ especially those who are not too partial to alcohol and cigarettes.î

Employers will welcome breathing space, and additional resources for skills

Overall, the CIPD welcomes the Chancellorís low key budget statement, which contrasts with the wealth of Government initiatives affecting employers in recent years.

Gerwyn Davies, CIPD public policy adviser, comments: While we endorse the additional resources allocated to welfare reform and skills that build on existing initiatives, the CIPD welcomes the breathing space that todayís announcement offers to our members, who have had to contend with streams of employment legislation and initiatives in recent years ñ albeit many of them well received and positive for the workplace. With recent CIPD research showing a record number of our members planning to carry out redundancies in the next three months, however, all efforts now need to be directed towards optimising organisational performance and minimising redundancies so that organisations are well placed to capitalise on any recovery in economic performance.

ìFurther investment to enable employers to take on more apprenticeships is also welcome. The CIPD has called for further support for employers taking on apprentices, so we are keen to see the detail of the governmentís proposals trailed in todayís budget.î