The majority of IT leaders feel tax breaks should be provided for investment in skilling their staff, according to research by the Chartered Management Institute (CMI).

According to the survey, which covered 811 CMI members, 78 per cent of IT managers think the government should support workforce skills development as they are no longer able to support it themselves.

Technology managers recognise that reduction of resources devoted to skills development will affect the business, says the survey, but are left with limited choice due to the credit crunch.

“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 Lord John Eatwell, CMI chief economist.

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

The government must take actions to “invest in recovery” in this week’s Budget, said CMI chief executive Ruth Spellman.

“Our survey shows that managers strongly favour tax breaks as a vehicle to stimulate investment and recovery and while the CMI supports other measures such as deferred tax payments and increases in capital allowances, we know that skills will be a critical constraint as soon as the economy picks up,” said Spellman.