Industry bodies welcome announcement on investing in skills

The new Labour government’s emphasis in the King’s Speech yesterday on building skills for future Britain was applauded by many, seen in the context of it providing a foundation for the sharpened focus on economic and industrial growth.

Naomi Clayton, director of policy and research at the Learning and Work Institute (L&W), said: “We are pleased to see the focus on economic growth in the King’s Speech. To this end, we look forward to working with ministers to reverse the decades of decline in investment in skills and help more people into work. 

“We’ve set out a blueprint for change to improve prosperity and widen opportunity, including through flexing the Apprenticeship Levy, and therefore welcome the planned reforms. We have also called for a better, more joined-up system that empowers local economies, and hope to see this supported through Skills England.”

Skills-short industries also voiced their support. Kevin Finn, executive chair of the Institute of the Motor Industry, was effusive about the new government’s approach to skills growth and training. He said: “We are pleased to see the focus on skills with the proposed creation of Skills England, bringing together government, businesses, unions and training providers. With 21,000 vacancies and critical skill gaps in EVs [electric vehicles] and ADAS [advanced driver-assistance systems, or electronic systems in cars that use technology to help drivers operate their vehicles safely and comfortably], urgent support is needed to maintain road safety and meet government goals.”

Speaking specifically of the automotive industry, Finn added: “The IMI will also represent the views of the automotive workforce and employers as the Apprenticeship Levy is reformed with a Growth and Skills Levy. It is hoped this will give businesses the flexibility they need to spend their Levy funds to deliver apprenticeship programmes, as well as access modular training to equip existing staff with future-proofed skills. Currently, the automotive training workforce is severely under-resourced, and the pipeline of new talent is not being adequately filled by new apprenticeships.

“The government has clearly indicated its intent to work with business as well as create a Council of Nations to secure economic growth across the country,” Finn noted. “The IMI will, therefore, work with the relevant ministers and departments to represent the automotive sector to ensure UK automotive remains a global leader.”

However, some urged the new government to consider hurdles along the way to full realisation of skills development in the near future. 

On the Skills England Bill, Dani Payne, senior researcher at Social Market Foundation, said: “A simplified skills system, with better long-term planning, will be welcomed by employers emerging from recent years of instability and uncertainty. However, developing a ‘single picture’ of national and local skills needs is not a small task, with technological advances liable to have rapid and unforeseen impacts on our workforce needs.

“The challenge will be in ensuring true partnership between all stakeholders. This already looks to be off to a rocky start,” Payne warned. She added: “Only employers were mentioned in the King’s Speech, with learners, providers and unions notably absent.” 

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