Budget fails to address skills shortage opposition MPs, such as Labour leader Andrew Little, say are preventing the Conservatives from meeting their stated goal of reducing inequality
Budget fails to address skills shortage opposition MPs, such as Labour leader Andrew Little, say are preventing the Conservatives from meeting their stated goal of reducing inequality. One of the criticisms levelled at the budget is that the chancellor is being too hard on businesses as some are now facing high costs of borrowing. However, the chancellor says the Government’s economic strategy includes tackling the skills shortage with a new approach to training and supporting apprentices.
We all know that high unemployment, a falling wage premium and a falling working age population mean there are many more people entering work today and in future that means more demand for employment. It also means that the wage premium is a more pressing issue, and with the government’s target of 5%, for all levels of employees to go up by an extra 0.7% over four years, the cost of employing an equivalent person will rise by £60,000 per year. For businesses the issue is far simpler and the budget fails to tackle both.
Employment costs alone, or salaries, are too high
There is a huge amount of money not being spent by employers on employment at the moment. Instead of encouraging businesses to spend on hiring additional workers, the budget fails to d바카라o anything to help business to create more. There is also another problem that will inevitably occur when we move to a much fairer, more gener더킹카지노ous welfare system as promised.
The Treasury report found that the most likely outcome of our low-paid workers’ low gospelhitzpay system is not a rise in wages but rather that the benefits are not being received. Employers are taking advantage of loopholes such as the income threshold that are set by an employee rather than the State.
The budget does provide some support to businesses by funding more apprenticeships for under-21s to enable them to go through the training, but by no means is that enough. It is clear from the report that the Treasury is not going to address the skills shortfall by looking to encourage employers to invest in training as it does not propose that the cost to employers should be paid by the State in order for employers to raise wages. This will only be possible if the Government and employers start making a commitment to increasing our skills base in some way.