Labour will give businesses the flexibility they need to invest
in skills training as the huge cost to the economy of businesses
unable to get the skills and workforce they need is laid bare.
New analysis from the party has revealed the increasing number of
business reporting staffing challenges with 500,000 businesses
having to pause some of their trading activity because of a
shortage of workers with the right skills.
At the same time nearly half of businesses are unable to get the
skills they need, with firms having a high demand for a range of
skills including, customer service, basic and advanced digital
skills.
Labour will address the skills and workforce shortage holding
firms back by giving businesses the flexibility to train their
workforce and deliver growth. Labour will turn the Tories’ failed
Apprenticeships Levy into a ‘Growth and Skills Levy’ allowing it
to be used on a greater range of courses, including digital
skills, to ensure businesses can invest in their workforce
gaining the skills businesses need to grow.
, Labour’s Shadow
Business Secretary, said:
“All good businesses know that their workforce is their greatest
asset. Labour will give firms the flexibility they need to train
staff and make sure our businesses can grow.
“Labour's plan to unlock the skills and talents of British
workers in partnership with business will help workers improve
their skills and ensure businesses can develop. It’s clear only
Labour has a plan to address the skills shortages we face and get
our economy back on track.”
Ends
Notes:
Question: Which, if any, of the following skills has your
business had a high demand for in the last 12 months?
47.7% of businesses surveyed were demanding skills they were
unable to get. Figure calculated from the 52.3% of respondents
who reported no demand for new skills. Detailed breakdown of the
skills demanded can be found in the table below
|
|
Skills needed
|
|
Advanced digital skills
|
8.8%
|
|
Basic digital skills
|
7.7%
|
|
Customer service skills
|
13.1%
|
|
Management or leadership skills
|
14.2%
|
|
Manual skills
|
12.1%
|
|
Transferable skills
|
17.1%
|
Source: Business insights and
impact on the UK economy - Office for National Statistics
(ons.gov.uk)
9.1% of businesses also reported having to pause trading some of
their business because of a lack of workers
Source: Business insights and
impact on the UK economy - Office for National Statistics
(ons.gov.uk)
9.1% of the total number of businesses in the UK (5,508,935)
estimates that 500,000 businesses have had to pause trading some
of their business because of a lack of workers
Source: https://www.gov.uk/government/statistics/business-population-estimates-2022/business-population-estimates-for-the-uk-and-regions-2022-statistical-release-html
Labour’s Growth and Skills Levy:
Labour will give businesses the flexibility they’re asking for to
train their workforce and deliver growth. We will start by
turning the Tories’ failed Apprenticeships Levy into a ‘Growth
and Skills Levy’ so it can be used on the greater range of
training courses that businesses tell us they need, so adults can
gain new skills and businesses can grow.
Under this system companies will have the freedom to use up to
50% of their total levy contributions on non-apprenticeship
training, with at least 50% reserved for apprenticeships. Small
and medium size employers who do not currently pay the
apprenticeships levy will continue to receive 95% co-payments.
Skills England will hold a list of approved qualifications on
which businesses can flexibly spend their levy money, developed
in collaboration with devolved authorities, businesses, unions
and wider experts.
This will include:
- Modular courses in priority areas, which lie at the core of
our industrial strategy, including digital and green skills,
social care and childcare, that would boost training
opportunities with a view to supporting national ambitions such
as the transition to net zero.
- Functional skills and pre-apprenticeships training, helping
tackle key skills gaps especially around basic digital skills
that hold back individuals and organisations.
As the development of technology and digital skills changes the
way we work, individuals will need more regular, flexible access
to training. This flexible approach, encouraging modular learning
alongside apprenticeships, could help enable non-apprentices to
get access to and training in using the latest technologies.
Labour’s changes will create opportunities in this changing
landscape and ensure that individuals who are starting out
alongside those who are already well skilled can get access to
training courses.
