Following the announcement in the Labour Party manifesto that the re-elected government would look seriously at introducing a tax credit to encourage companies to undertake workplace training, the Chancellor has stated that the government is prepared to bring in a tax credit or grant along the lines of the existing system for working families.
In the March budget, the Chancellor had stated that the government were prepared to consider the case for a new tax credit for training but no definite commitment has been made to the idea to date.
In a speech to mark the press launch of Enterprise for All, the goverment's latest plans for encouraging 'an entrepreneurial culture', the Chancellor stated:
"Our new British tax credit system that applies to work and families allows the tax system to pay out money as well as receive money. Because of its strategic national importance to the future of our economy --- and because the voluntary approach has not achieved enough so far --- we are prepared to apply to workplace training the same radical approach, with the government not only recognising companies’ investment in skills when they pay tax but looking at contributing more through a new workplace skills tax credit or grant."
However, he continued: "But we will only move ahead with this reform if the opportunities we offer are matched by new responsibilities accepted by both employers and employees." These 'new responsibilities' have yet to be fully outlined, but suggest a 'carrot and stick' approach to be taken by the government in encouraging companies to develop their staff.
