Ben Willmott, head of public policy for the CIPD, the professional body for HR and people development, commented:

“The Government’s focus on boosting research and development and growth in high-tech and green energy sectors, while critically important, is too narrow. This Budget sorely lacked a broad economic strategy to improve living standards and boost productivity across the economy including in sectors like retail, hospitality, transport, logistics and social care which employ millions of people.

"There is a real and urgent need for a workforce plan for the UK to raise employer investment in skills and support workers’ wellbeing and participation in the labour market.

“The National Insurance cut will be welcomed by many workers but it’s highly optimistic to suggest that this move alone will get the equivalent of 200,000 more people into full time work and solve for one in five vacancies. The factors affect UK labour market participation are much more complex. For instance, there was nothing in the Budget to reduce rising levels of economic inactivity due to ill health. Health policy is economic policy and   requires more ambition from Government and significant changes such as improving employer access to occupational health services and reforms to Statutory Sick Pay.

“There was also very little to address skills and tackle the hard-to-fill vacancies facing many employers. We urgently need the Government to heed the long-standing calls of employers and business groups and reform the Apprenticeship Levy to reverse the collapse in the use of apprenticeships in SMEs and among young people since 2017. This vital reset would help boost training and development in all its forms and ensure that more apprenticeship opportunities go to the group that most need and benefit from them, young people.

“The Government is right to prioritise improving public sector productivity. However there needs to be a complimentary focus on improving people management and workforce skills if new technology is to be adopted effectively to improve the delivery of public services.”