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 CIPD PRESS RELEASE 28 January 2008

Government should provide tax relief on train to gain, says CIPD

The Chartered Institute of Personnel and
Development (CIPD) welcomes the governments
renewed calls to expand apprenticeships in
the UK, but is concerned that small/medium
enterprises which provide the majority of
apprenticeships lack the financial support
they need.

The CIPD believes the government should
re-examine the tax agenda especially capital
gains tax with a view to offering tax relief
on train to gain schemes. It costs an employer
thousands of pounds to take on an apprentice.

The CIPD also welcomes the government's
announcement for companies' such as McDonalds,
Network Rail and Flybe to deliver in house
training programmes equivalent to A Levels.

John McGurk, CIPD's Learning, Training and
Development adviser said: "The CIPD is
delighted the government is formally recognising
high quality in house training programmes like
those announced today. With an increasing
number of UK organisations facing acute
recruitment and skills shortages, many
employers see in house training and
apprenticeships as a better means of
addressing these than externally provided
courses.

"Training and qualifications are central to
upskilling employees and improving productivity.
But any effort to increase skills has to be
underpinned by good people management. The
assumption is still that more training and
qualifications automatically produces higher
productivity. However skills development is
much less effective if it is detached from
people management practices such as job
appraisal and reward.

"Organisations must also be aware skills training
should be transferable to other roles and companies,
allowing individuals to develop and contribute to
the UK's knowledge economy ."

* John McGurk is available for interview.

* The CIPD website address is http://www.cipd.co.uk
If you are a member of the press and wish to view
other CIPD information, please visit
http://www.cipd.co.uk, call 020 8612 6400, or email
mailto:press@cipd.co.uk

* The Chartered Institute of Personnel and Development
(CIPD) has over 130,000 members and is the leading
professional institute for those involved in the
management and development of people.

CIPD press enquiries:
Meera Vohora/ Hannah Smith
CIPD Press Office
151 The Broadway, London SW19 1JQ
Tel: 020 8612 6400