Viewpoint: Spending Review demands wise heads

Some argue that we should not be surprised, though even if this is so, that knowledge does not negate fear. This was clearly demonstrated in research undertaken by the Chartered Management Institute in the run-up to the Chancellor's announcements: asked about issues affecting business, 76% argued that the Spending Review is a threat.

One question that employers must answer is how they will cope with the extensive budget reductions affecting the Department for Education and Department for Business, Innovation and Skills. Both departments' cuts will adversely affect the quality of talent available to employers and, with it, the performance and productivity levels needed for the UK to be globally competitive. In addition, funding reductions in further higher education will affect the volume and quality of education offered each year and, with this, we are likely to miss out on developing the management skills needed to help grow business and put the UK back on a sound financial footing.

For these reasons, the CMI is calling for greater collaboration among government, professional bodies and employers. Only with a united front will we be able to ensure that the commitment to develop skills is shared and recognised by all. We also need to see acceptance that the skills needs of the current workforce must be addressed. The future must be protected and one way to do so is to ensure that employers are able to build for the recovery now.

There are tough times ahead. It is understandable that the Spending Review has caused considerable anxiety because it will have a big impact on so many aspects of the working environment. If the right steps are taken, however, the Spending Review should mark the beginning of the UK's return to growth.