The government’s 2025 spring statement has come under fire from the CIPD, the professional body for HR and people development, which warns that the Chancellor’s plans risk undermining business productivity and job creation by failing to address the real workplace challenges faced by employers.
While the Chancellor announced increased funding for defence and infrastructure, CIPD Head of Public Policy Ben Willmott said the statement lacked meaningful support for businesses and failed to tackle the growing cost and complexity of employing staff in the UK.
“While the Chancellor highlighted welcome support for key sectors such as defence and plans to boost investment in infrastructure and housing, there was no recognition of the need to provide more support for employers,” said Willmott.
He warned that recent government moves — including national insurance hikes and the forthcoming Employment Rights Bill — have added costs and regulatory burdens to businesses at a time when they need greater flexibility and support.
“We now need to see the Government back businesses by setting out how it will work with employers to address these challenges and boost productivity, as together these measures stand to undermine business investment in workforce training and employment,” he said.
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