Emergency budget – what it means for HR and employers

This ‘emergency’ budget, delivered by Chancellor George Osborne (flanked by two Liberal Democrats to prove how well the coalition is working and how much cross-party support the financial plan has) could be significant for managers and HR, according to business leaders and the CIPD.

John Philpott, chief economic adviser at the Chartered Institute of Personnel and Development (CIPD) said: “The Chancellor has introduced what must surely rank as the most astonishing UK budget statement in modern times. Mr Osborne’s combination of £32 billion additional spending cuts by 2014-15 and an £8 billion net tax hike amounts to an unprecedented fiscal squeeze, including an extremely severe clampdown on the welfare bill.”

He also commented on the management challenges faced by the public sector, saying: “Significant job cuts were inevitable whoever won the election. However, there is little evidence that any of the parties gave serious thought to the enormous management challenges associated with delivering their manifesto commitments through a workforce demoralised by redundancies, pay restraint and pensions reform.”

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