Hampshire Chamber of Commerce is urging the government to address the skills gap.

The push comes in light of the new Employment Rights Bill, which the chamber welcomes as a step forward in enhancing worker security.

However, the chamber stresses the importance of careful implementation of the bill.

The bill proposes 28 specific changes, including alterations to zero-hours contracts, fire-and-rehire practices, statutory sick pay, and day-one rights for parental and bereavement leave.

Additional reforms include the removal of employers' protection from unfair dismissal claims, promotion of flexible working as the default, increased scrutiny on large employers regarding gender pay gaps, and a requirement for a menopause support plan.

The chamber argues that these changes must be accompanied by the establishment of a new national skills agency, Skills England, which should align with the work being done through Local Skills Improvement Plans (LSIPs).

The Solent LSIP, led by the Hampshire Chamber, saw ministers approve 14 recommendations last year, aimed at integrating skills development into business planning over the next three to five years.

Ross McNally, Hampshire Chamber chief executive and executive chairman, said: "The bill must achieve a fair balance between support for employees in their working lives and scope for businesses to continue to recruit and retain staff and grow.

"Although most of the measures won’t be in place immediately, we recommend our members and other employers act now to review their existing contracts and staff policies.

"It will certainly be more important than ever to have clear family-friendly processes in place and specifically on issues such as what may be considered fair reasons for dismissal.

"But there is a quid pro quo here. While enhanced workers’ rights are a good thing, employers preparing for the changes still need to plug the enduring skills gaps that have long plagued the UK economy.

"We call on the government to support employers here in Hampshire, whether they are in private business, the third sector or the public sector, by partnering with organisations such as ours on skills development strategy."