New courses will be funded through the growth and skills levy from early next year, according to the government’s industrial strategy.
‘The UK’s Modern Industrial Strategy’, published today, promised to take a more “muscular” approach to government by taking “punts” on priority sectors over the next ten years “in pursuit of growth and productivity”.
The reform of the apprenticeship levy into the growth and skills levy will be rolled out from April next year, the strategy has now confirmed.
New ‘defence technical excellence colleges’ will also be launched, with further details in a sector-specific industrial strategy that is yet to be published.
The strategy pledged to create a “strong pipeline” of trained workers for eight priority sectors: advanced manufacturing, creative industries, clean energy, digital and technologies, business and professional services, life sciences, financial services and defence.
A more detailed ‘sector plan’ for the first five of these has been published alongside the main industrial strategy, including initiatives, public investment and details of which government departments and senior servants will be accountable for delivering them.
The new levy
Non-apprenticeships courses in the growth and skills levy will cover skills such as digital, artificial intelligence and engineering, for the creative industries and advanced manufacturing sectors.
The strategy says: “We will work with Skills England to determine the courses which will be prioritised in the first wave of rollout and subsequent waves, and how those sit alongside apprenticeships and other training routes”.
The strength of the UK’s skills pipeline will be “critical” for attracting global investment and ensuring the country’s high-growth sectors remain competitive, the strategy says.
It adds: “Ensuring the UK has a healthy population whose skills meet the needs of employers will bring people into the labour market and unlock opportunities for high-quality jobs. Skills increase productivity, increase innovation, and support tech adoption”.
Other initiatives
Other new initiatives include a three-year, £100 million engineering skills package, “workforce strategies” for industries facing talent shortages and “AI adoption hubs”.
Designated government departments will lead on workforce strategies – pledged during the general election – will “move the dial and support good jobs” by agreeing measures with trade unions, local leaders and “wider stakeholders”.
The Office for Clean Jobs has been asked to publish the first of these strategies by 2025, supported by an array of quangos including the Labour Market Evidence Group, the Industrial Strategy Advisory Council, the Migration Advisory Committee and Skills England.
A list of occupations that are exempt from the planned increase to the threshold for skilled worker visas because they align with industrial priorities will also be “published shortly”.
Tech-industry supported ‘AI adoption hubs’ aim to train 7.5 million UK workers in essential AI skills by 2030 have been launched “separately”.
Recently announced and existing skills-related initiatives re-announced in the paper included the £187 million TechFirst technology skills package, the four-year £600 million construction skills package, and the repeatedly delayed lifelong learning entitlement due to launch in January 2027.
Not just skills
Alongside skills the government also promises to improve issues such as energy costs, economic security, access to finance and regulatory burdens in its “drive for growth”.
The strategy also says it will target sector-specific investments in city regions and industrial clusters where industries already concentrate and offer the “highest-potential opportunities”.
Your thoughts