Companies hope for greater training support in Budget, study finds
Almost three quarters of respondents are facing a shortage in operational (72%), financial (69%) and managerial (69%) roles
Businesses are hoping to see the government focus on investing in skills and training to support business growth in the Spring Budget on 6 March, according to Grant Thornton’s latest Business Outlook Tracker.
The firm’s latest Business Outlook Tracker, which surveyed 600 mid-sized businesses in early February, found that the policy areas they would most like prioritised by the government are greater access to investment in skills and training; improvements to infrastructure; and incentives for employers to invest in R&D.
Supporting skills development also topped the mid-market tax policy priorities, with ‘tax incentives for employers to invest in skills’ ranking number one, alongside ‘incentives for green investment’. This was jointly followed by ‘simplification of the UK business tax system’, ‘corporate tax cuts for UK businesses’ and ‘tax incentives for employers to invest in R&D’.
This focus on skills comes as the competition for talent remains fierce in the market and ‘attracting and retaining people’ poses the biggest challenge to mid-sized businesses over the next six months.
According to the tracker, almost three quarters of respondents are facing a shortage in operational (72%), financial (69%) and managerial (69%) roles.
Hazel Platt, head of tax at Grant Thornton, said: “Skills have come out as a top priority for businesses across our latest survey, as the market continues to compete for talent. But as businesses can, generally, already deduct 100% of staff training and development costs against their taxable profit, it’s unlikely that we will see significant changes in this area.
“This Spring Budget is also expected to be a quieter affair with regards to R&D, after last year’s Autumn Statement confirmed the government’s wide-reaching review – which has been ongoing since 2021 – has now concluded.”
She added: “As this is anticipated to be the last major fiscal event ahead of the General Election, any announcements are expected to be focused on closing the gap in the polls, with business tax cuts coming in second, behind those to reduce the tax burden for individuals.”
