PBR: The business reaction
Gordon Brown's pre-budget report (PBR) has received a lukewarm reaction from business groups saying that while the chancellor's measures on boosting skills are welcome, the burden for training must not fall too heavily on businesses.
Among several measures aimed at driving up the skills exhibited by UK workers, Brown said employers will be encouraged to get give staff more time off to train.
Brown acknowledged during his speech that the recently published Leitch review of skills assessed that a new statutory entitlement to skills training may be required.
The Federation of Small Businesses (FSB) welcomed the overall message on skills but said firms would be less pleased about the threat to force business to train their staff regardless of their individual needs.
Colin Willman, FSB education chairman, said: "Lord Leitch...is right to say that skills provision must be led by demand from businesses.
"The requirements of small business must be a priority because they employ 58% of the private sector workforce. Our average member employs four people.
"They need bite-sized courses, based in the workplace, to avoid losing a large proportion of their workforce when only one member of staff is being trained. This will enable small business to train their staff and will also avoid the need for heavy-handed government compulsion."
The Forum of Private Business (FPB) also called for a strong focus on the training needs of small businesses.
"Smaller firms employ far more of the private sector workforce than their larger counterparts and, as such, their needs should be prioritised," said FPB chief executive Nick Goulding.
"Many employers are are not aware of the support they can receive. The 'Train to Gain' scheme that Mr Brown highlighted in his pre-budget report does not seem to be having an impact."
Business groups also bemoaned the lack of focus in the speech on reducing the small firms' tax burden.
FSB national chairman, John Walker said: "After several years of increased complexity it is very disappointing that there was no signal of a change in direction on the complexity of the tax regime. It has cost small businesses a lot of time and money over recent times to comply with tax form requirements or hire external expertise."
The Confederation of British Industry (CBI) also bemoaned the "silence" on the issue of corporate tax.
"Business did not expect a reduction in taxes today, but hoped for some recognition of the growing disparity between the UK rate of corporation taxation and those elsewhere," said Richard Lambert, CBI director-general. "This, together with the complexity and compliance burden, risks business investment shifting overseas."
Over at the British Chambers of Commerce, director general David Frost said the government must now show it can deliver on the chancellor's wishlist without having to increase taxes.
"Building upon the Barker, Eddington and Leitch Reviews the opportunity is there to set a course that will enable the UK to meet the challenges posed by a globalised economy over the long term," he said.
"The one question we would ask however is where the money to pay for all that has been proposed is to come from. Business will want reassurance that this is all affordable and there will not be significant tax rises in the March budget."
