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CIPD - Brexit must not overshadow fundamental challenges facing UK businesses

Queen's Speech recognised the challenges facing business but failed to deliver concrete proposals to solve fundamental issues

In response to the Queen’s Speech, Ben Willmott, Head of Public Policy at the CIPD, said:

“The Queen’s Speech clearly recognised the challenges facing government on Brexit, but fell short of concrete proposals to address the UK’s productivity deficit, which is key to boosting pay, living standards and the ability of UK businesses to remain competitive outside of the European Union. It’s vital these key challenges are not overlooked and are a central focus for the industrial strategy as Brexit unfolds, given that they will prove fundamental to the UK’s success outside of the European Union.” 

On skills:

“While plans to upgrade standards in UK technical education are welcome, it is disappointing that the Queen’s Speech did not set out any proposals to boost wider investment in skills development, particularly in adult skills and lifelong learning. This is an area that is increasingly critical to the economy as a result of the growing impact of automation on the workplace and our ageing population.

“It’s important that plans announced to develop a modern industrial strategy have a strong focus on boosting the quality of people management capability and identifying and matching skills across the economy. This will prove essential if we want to create more high-skilled jobs and boost workplace productivity and it will be important for the government to work closely with bodies like ourselves and the wider business community to achieve this.” 

On corporate governance:

“It is disappointing the Government appears to have dropped plans to reform corporate governance, as evidence suggests that executive pay is still out of kilter with that of the wider workforce. Too often, a focus on narrow financial measures and short-termism means that there is a lack of investment in the long-term drivers of value – particularly the skills and well-being of the workforce.”

On modern working practices:

“We welcome moves to enhance rights and protections for those engaged in modern working practices. While the gig economy provides the flexibility that many people want, it does not work for everyone. Work must be fair and decent for all. That’s why we’re calling on the Government to introduce a ‘Know your Rights’ campaign, to ensure that workers are clear on their rights in an increasingly fragmented world of work.”

On inclusion:

“It was promising to see the Government’s support for further progress to tackle the gender pay gap and discrimination against people on the basis of their race, faith, gender, disability or sexual orientation. We need to make much more progress on creating inclusive workplaces and providing opportunities for progression and fairer distribution of reward.” 

On immigration:

“While the Queen’s Speech outlined plans to introduce an immigration bill, there is still a concerning lack of detail about what the future immigration system in the UK will look. Research published this week by the CIPD and NIESR clearly shows that businesses are sounding the alarm on access to talent, and are very concerned that sweeping changes to immigration will leave them unable to access the talent they need. Government needs to address those concerns by consulting much more widely with business to ensure that the future immigration system serves the needs of the economy and allows organisations to access both the skilled and unskilled talent that they need.”

Queen's Speech 2017

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