CIOs demand tax breaks for skills development

Managers believe a skilled workforce will aid economic recovery

IT managers are calling on the government to do more to help their organisations improve staff development.

Research by the Chartered Management Institute (CMI) found that 78 per cent of IT managers think the government should provide tax breaks to businesses offering training programmes to staff.

The data is taken from the CMI’s bi-annual Economic Outlook Survey, which this time questioned 811 managers across the UK about how the economy is impacting their business.

“Business managers are convinced that a skilled workforce will be an integral part of the recovery process, and are recommending that, especially in these difficult times, government should provide further financial support for skills development and training,” said CMI chief economist Lord John Eatwell.

“This would be an investment in a competitive future, and should be a priority for the recovery programme embodied in the budget."

Meanwhile, jobs are continuing to disappear from the technology sector.

The number of people working in Silicon Valley fell by more than four per cent in the past year, according to new data released by California’s Employment Development Department.

This week, analyst Sid Parakh from McAdams Wright Ragen suggested Microsoft would lay off more people than the previously announced 5,000 redundancies as a result of additional restructuring activities.

Meanwhile Tony Sacconaghi, a technology analyst with Sanford C Bernstein & Co, predicted Oracle could axe 10,000 jobs as a result of the Sun Microsystems deal announced Monday.

The most recent UK employment figures, released on 18 March, show that the number of people out of work has risen above two million for the first time in nearly 12 years. New employment figures are due on Wednesday when chancellor Alistair Darling presents his budget.