Spending cuts threaten attempts to close skills gap say business leaders

CUTS in spending could undermine attempts to bridge the skills gap in the West Midlands, business leaders have said.

The Greater Birmingham Chambers of Commerce (GBCC) said it was keen that all efforts to promote skills development were encouraged.

The comments follow a demand by British Chambers of Commerce director general John Longworth for a renewed effort during the new Parliament’s lifetime to close the skills gap.
 
Business bosses have long complained about this situation, which has led to thousands of youngsters leaving school or further education every year without any of the skills required by industry and commerce, including literacy and numeracy.
 
The government has admitted that there is a problem, with Chancellor George Osborne pointing out that Britain is one of only three Organisation for Economic Co-operation and Development (OECD) countries where the skills of those leaving education are no better than those of their grandparents.
 
Mr Longworth said: “By the end of the Parliament, we want to see a workforce with literacy, numeracy and problem-solving skills that rank in the top ten in the OECD measures.
 
“To help businesses thrive, they need access to a pipeline of skilled young people.
 
“To deliver that, we need schools, colleges, universities and businesses to work together to bridge the gap between education and work.”
 
David Tomalin, manager of the GBCC-based Skills Hub, said he supported the comments by Mr Longworth about the need for skills, but warned that cuts in education spending could badly harm progress in this area.
 
He said: “I agree with John Longworth that skills are needed to support and sustain our businesses. David Cameron is also talking about the need to up-skill British people to enable them to be more employable in today’s current labour market.
 
“However, this has to be contextualised against a background of continuing cuts, including a potential 24% cut in adult skills funding in the next academic year, which would seem to imply that the aspiration will not be matched by reality unless there is a clear commitment to fund skills development beyond apprenticeships, maths and English.”
 
Other organisations have warned about what cuts to skills funding might lead to, including the Association of Colleges (AoC), which is the national representative body for further education.
 
Martin Doel, chief executive of the AoC, said: “Adult education and training is effectively being decimated. These cuts could mean an end to the vital courses that provide skilled employees for the workforce such as nurses and social care workers.

“The potential loss of provision threatens the future prospects of the millions of people who may need to retrain as they continue to work beyond retirement age as well as unemployed people who need the support to train for a new role.”
 
The chamber-based Skills Hub has been set up to boost links between business and education.
 
The Skills Hub is a partnership between the chamber and nine further education colleges in the region, and its aim is to help businesses expand by ensuring their workforces have the right skills.  
 
Mr Tomalin said: “Skills should be part of everybody’s growth agenda because it will allow businesses to support and sustain their growth ambitions.”