Over 30 per cent of firms cut training budgets

10:17 3rd April 2009

More than 30 per cent of UK firms have reduced their training budgets in response to the recession.

Figures from the Chartered Institute of Personnel and Development (CIPD) reveal that many firms expect budget cuts to continue in 2010, although a clear majority (70 per cent) of the 900 businesses surveyed said training remains a company priority.

More than 80 per cent of businesses said management and leadership are two of the most crucial skills employees can develop to help their firm withstand the recession.

Claire McCartney, learning, training and development adviser for the CIPD, said: "A skilled and motivated workforce will be essential to ensure organisations are well placed to take advantage of the recovery when it comes."

She added that businesses are not reducing training budgets without due consideration as the need for skilled workers is largely recognised.

Companies which invest in training opportunities could also encourage employees to pursue additional computer courses.

Boris Johnson, the mayor of London, recently allocated more than £20 million towards providing training opportunities for young offenders in the capital.