Business leaders welcome Budget, but want more answers

In today's Budget Report, the Chancellor announced measures designed to stimulate business growth, but whilst many of his proposals will be supported by the UK’s management and leadership community, questions remain over how some cutbacks will play out in reality. 

The Chartered Management Institute’s (CMI) own Economic Outlook report shows that 71 per cent of managers in the private sector think the Government is right to accelerate deficit reduction and 42 per cent support moves to reduce business taxation.  Against this, however, is the belief – amongst 81 per cent of managers - that employers need greater support developing the skills needed to better handle growth, when it comes.

CMI chief executive, Ruth Spellman, says:

“It is very telling that UK managers are most vocal about skills development.  Of course, they welcome moves to manage the tax burden on business, but there is a clear message that no matter what the economic conditions, UK plc has no hope of a quick recovery or renewed competitive success without a skilled workforce at its helm.  After all, if Government and business can combine forces to address the skills deficit, it will be a step in the right direction to tackle the budget deficit.

“There is, however, a fear that many of the proposed cuts will see arbitrary swinging of the axe across management levels, with little thought about the consequences.  Yes, there have been too many examples of catastrophic leadership failures across the private sector and the NHS, and the Government is right to act now before more bad management costs lives.  However, the desire to cut costs should not just be about imposing random reductions at management level.  Now is the time to focus on removing managers whose capabilities fall below the first class standards that the consuming public have a right to expect.  We need answers about how costs can be cut without cutting corners, and that enable us to invest in high quality managers who can drive the necessary public sector reform agenda.”

CMI has also welcomed the Chancellor’s plans to open a public consultation on the Default Retirement Age. 

Spellman says: “Forcing people to retire simply because there is an arbitrary belief that they have celebrated one birthday too many is a ridiculous state of affairs.  In an environment in which organisations are crying out for a better skilled workforce, it makes no sense at all to lose talent and experience simply because of a birth certificate.”  

 

 

 

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Further information:

Mike Petrook or Donna White
Telephone: 020 7 421 2714 or 020 7 612 8847
Email: mike.petrook@managers.org.uk or donna.white@kindredagency.com

 

 

NOTES TO EDITORS

• The Chartered Management Institute (CMI) is the only chartered professional body in the UK dedicated to promoting the highest standards of management and leadership excellence.  CMI is the guardian of the National Occupational Standards for Management and Leadership and sets the standards that others follow
• As a membership organisation, CMI has been providing forward-thinking advice and support to individuals and businesses, for more than 50 years, and continues to give managers and leaders, and the organisations they work in, the tools they need to improve their performance and make an impact

• As the only organisation to offer qualifications from Level 2 (GCSE) to Level 9 (PhD), CMI is committed to equipping individuals with the skills and knowledge to be exceptional managers and leaders.  Qualifications and accreditations such as Chartered Manager, combined with products such as CMI’s Continuous Professional Development scheme and the online support resource, ManagementDirect, support the development of management and leadership excellence across the UK

• Through in-depth research and policy surveys of its 81,000 individual and 450 corporate members, CMI maintains its position as the premier authority on key management and leadership issues