Hampshire Chamber of Commerce has called for action to tackle skills shortages.

This comes as the government plans a major overhaul of employment rights.

The Employment Rights Bill aims to boost job security with 28 reforms, including changes to zero-hour contracts, statutory sick pay, and dismissal protection.

The chamber, representing businesses across all sectors, welcomed the bill but warned that its implementation must be balanced.

Hampshire Chamber's chief executive, Ross McNally, 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."

He also stressed the importance of employers reviewing existing contracts and staff policies in light of the proposed changes.

Mr McNally raised concerns about the enduring skills shortages that have long troubled the UK economy.

He called on the government to support Hampshire employers by "partnering with organisations such as ours on skills development strategy".

Mr McNally suggested that the new national skills agency, Skills England, should work in harmony with the ongoing Local Skills Improvement Plans (LSIPs).

Hampshire Chamber leads the Solent LSIP and supports the EM3 LSIP led by Surrey Chamber of Commerce.

Mr McNally said: "Ministers need to be careful with any ‘top down’ skills approach that risks overriding local needs. They must align policy and build on LSIPs’ regional progress to date."

Last year, ministers approved 14 recommendations under the Solent LSIP.

The plan followed detailed research into persistent skills gaps in the labour market.

The recent Solent LSIP progress report highlights the success of a skills brokerage service that has already supported more than 100 employers.

Mr McNally said: "The LSIP covers sectors where the Solent has recognised strengths, such as marine, maritime and engineering, and others struggling with acute recruitment and skills pressures including hospitality, health and social care and logistics."

He also highlighted the importance of skills development in the third sector, saying: "If you have skills shortages in any workplace, they damage the ability to operate and be productive.

"It’s exactly the same whether you are a commercial firm, a charity or a public sector organisation."

The chamber plans to continue lobbying the government to ensure Hampshire's voice is heard during the consultation process and passage of the Employment Rights Bill.