Tackling the public deficit – have quangos had their day?

Figures highlighted in the Chartered Management Institute’s (CMI) Economic Outlook report show that 69 per cent of business leaders believe that employers should be given greater control over funding for skills development.  More than 8 out of 10 also argue that the Government should provide tax breaks for organisations investing in the development of their staff.

These figures have been highlighted in the wake of the publication of a policy paper calling for closer examination of the role quangos play in the education and skills sector.  Produced by the CIPD, the paper questions the lack of accountability of many quangos and, rightly, suggests that the sum of money spent on them warrants attention.

CMI welcomes the debate and is calling on the coalition Government to work with the UK’s self-funding professional bodies in an effort to tackle the skills and debt crises.  CMI argues that the UK’s professional bodies are well-placed to support Government plans through long-established relationships with employers and the experience of delivering over a million qualifications each year.

Responding to the debate, Petra Wilton, director of policy and research at CMI is urging the Government to address the key issues facing business leaders, by taking action on three specific areas:

1)       giving employers and learners greater control over funding for skills development to reduce the amount of bureaucracy that hinders learning at work

2)       giving employers tax breaks to enable greater investment in the skills that matter to their specific organisation, rather than funding through the supply side and quangos

3)       reviewing business support mechanisms and recognising the role of professional bodies as key partners able to deliver support services without public funding

Petra Wilton says: “UK managers are integral to driving our recovery, but their efforts are being hampered by the extraordinary layers of bureaucracy that exist.  It’s an issue that needs to be examined because if the UK is to become truly competitive employers need to know who they can turn to for support and what level of support they can expect.  Our latest Economic Outlook survey revealed that investment in management development has fallen despite many employers reporting that management skills shortages would have a damaging impact on their business over the next six months.  The sooner this issue is debated in public, the better.”

Further information: contact Mike Petrook
Telephone: 020 7421 2714 or 07931 302 877
Email: mike.petrook@managers.org.uk

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