Government and schools need to do more to boost skills says Make UK

Manufacturers’ association Make UK warned that bolder policies were needed to speed the pace of reform or risk leaving the country’s Industrial Strategy “on the starting grid”.

But in its newly published Shape of British Industry report, it also questioned the ability of the current education system to contribute properly to developing the skills required.

Access to skills was “a longstanding Achilles heel” for Britain’s economy compared to its rivals, warned Make UK. In particular, this limited the ability of SMEs to scale up in to play a global role, it warned.

The organisation’s executive director Robert Halfon commented that manufacturers’ success would be “won or lost” on skills supply.

“For decades we have seen a slow-burn skills crisis in manufacturing. Now, with a shameful number of young people not in employment or education, fierce global competition for scarce skills, and tens of thousands of workers set to retire, this is a time-critical risk,” said Halfon.

He called for release of the existing £1billion-worth of unused levy and immigration funds for immediate investment. Make UK has previously decried this money as an extra tax on business.

Use of the Growth and Skills Levy and the Immigration Skills Charge would help provide more than a quarter of a million new apprenticeship starts, said the association.

The Make UK report canvassed nearly 150 manufacturers in January on a variety of questions relating to the skills challenge.

It revealed that 99% said skills were key to growth, while half said finding those with the right skills was their own major challenge.

Despite long-running criticism of the education system, a slight majority of respondents (53%) judged it to be capable of helping deliver on skills. However, a significant number – more than four in 10 – disagreed.

“Industry is committed to investing in the talent pipeline and helping Government solve the crisis affecting young people but, we need the right policy levers. We must end the constant cycle of reviews telling us what we already know and instead see genuine, radical action,” insisted Halfon.