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Keep ‘Budget for jobs’ genuine, pleads CIPD

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The Chartered Institute of Personnel and Development (CIPD) has urged the Chancellor to ensure this really is a ‘Budget for jobs’ by keeping people in work through a cut in employers’ national insurance contributions.

This should be backed by a focus on job creation for the young and long-term unemployed, added the institute.

Dr John Philpott, public policy director at the CIPD, has advised the government to delay the planned national insurance increase in 2011, and cut current contributions, as a means of bringing the economy closer to recovery.

“This year’s budget should be about saving existing jobs as well as helping the jobless find work,” added Philpott. “Employers in general are urging the Chancellor to adjust payroll taxes to support employment, while a majority of those in the manufacturing sector believe a short-time working subsidy would enable them to hold onto staff during the recession.”

Other measures recommended by the CIPD include delaying the annual rise in the national minimum wage this October, to help reduce the risk of job losses in low-paid sectors such as retail.

Following Gordon Brown’s pledge last week that this will be a ‘Budget for jobs’, Alistair Darling will deliver his annual budget statement on Wednesday, in which he is expected to set out a £2 billion package to boost employment in the UK.

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