Welcoming news from the Budget

23 April 2009

Skills

David Thomson Director of Policy and Public Affairs at the CII said

"The CII welcomes the acknowledgement that skills continue to be a top priority during this economic downturn. But we must not lose sight of our long term skills goals – those put forward by Lord Leitch and which are still relevant today. Hopefully the £260m announced today for under 25s will help provide them with a base to build upon so as to make a vital contribution to the economy. Though some re-skilling in a time of recession is necessary, it must not divert support away from the longer term goal of upskilling needed for our economy to remain internationally competitive. If we take our eye off the ball we could be playing catch up for a very long time. 'Who trains, Wins' remains a relevant mantra for companies through the recession."

Climate change

The CII welcomes the Chancellor's Budget 2009 pledge to invest in a 'green stimulus' for growth, including £1 billion to combat climate change and create green collar jobs and develop low carbon industries, and a commitment to cutting carbon emissions by 34% by 2020.

This is an important first step, but falls far short of Lord Stern's recommendation to invest £10bn of extra public money in a 'New Green Deal', as well as the Climate Change Committee's recommendation of a 42% carbon reduction by 2020.

David Thomson Director of Policy and Public Affairs at the CII said:

"Much more must be done if we are to meet the challenges posed by climate change, and take advantage of the opportunities to 'grow our way out of the recession'. Current economic circumstances should not obscure the importance of acting now to address climate change."

"The CII recognises that the insurance industry needs to act now to adapt and mitigate the worst effects of climate change. Government support will be vital as the world negotiates a new international climate change deal to be agreed in Copenhagen later this year."

"We look to governments – not just the UK - to agree a framework that takes into account both mitigation of the worst dangers and adaptation that will allow the industry to play its full role in the fight against climate change".