GovWire

Press release: Without skills, businesses are “driving with the handbrake on”

Hm Treasury

June 21
23:01 2023

The governments Skills for Growth conference takes place today (22 June), hosting some of the biggest British and international companies to discuss how we can create a workforce fit for the future and address the urgent recruitment needs of businesses.

The Education Secretary Gillian Keegan will speak at the event, alongside Chancellor of the Exchequer Jeremy Hunt, Business and Trade Secretary Kemi Badenoch, Skills Minister Robert Halfon and Business Minister Kevin Hollinrake alongside the governments independent skills policy adviser, Sir Michael Barber.

Among the major employers attending to discuss the future of skills are Google and Amazon, as well as BP, BAE Systems, Virgin Atlantic, Thames Water, Greene King and Travis Perkins.

In May 2023, there were 1,051,000 job vacancies in the UK, according to the Office for National Statistics. In 2019, 24 per cent of vacancies were the result of skills shortages.

Education Secretary, Gillian Keegan said:

I know from my years in business that organisations drive innovation andcreate opportunities, but without skilled workers, it often feels like youre driving with the handbrake on.

The Government is investing in building future skills for growth andcalling on businesses to work with us, so that together we can build the workforce of tomorrow.

Chancellor Jeremy Hunt said:

While unemployment is at near record lows, we still have some 1 millionjob vacancies in the UK. Getting businesses the skilled workers they need will not only grow the economy, but help cut inflation too.

Todays conference will bring together some of the biggest businesses inBritain and help us make sure our workforce has the skills for the future.

Business and Trade Secretary Kemi Badenoch said:

Successful companies need skilled workforces and as the Business andTrade Secretary I want to listen to the needs of business to ensure that the skills system delivers for them, creates even more highly skilled jobs and grows the economy.

This conference is vital to show how government can support business to build our skills base and ensure we have the right workforce for the jobs of the future.

In addition to the conference, the government is urging employers to hire more apprentices, especially younger workers, and to invest more in training and upskilling their workforce. We are also highlighting the wide range of government-backed courses and support which is available, including Skills Bootcamps and Free Courses for Jobs as well as 2.7 billion of additional funding to support businesses to take on more apprentices and the ongoing rollout of T Levels.

In all, over 200 delegates are due to attend, representing a huge range of different sectors, from engineering and aerospace, to digital technology, retail and managing the environment.

They will meet many people benefiting from government skills programmes, including apprentices, T Level students, people taking Higher Technical Qualifications and participants in Skills Bootcamps, discussing their experiences.

The event is also being delivered in partnership with World Skills UK, who organise the participation of skilled UK professionals in the worlds largest competitive skills showcase. Previous winners of World Skills events will also be present to discuss their experiences.

The critical mass of expertise assembled at the Business Connect - Skills for Growth conference will inspire business leaders and help to grow the UK economy, creating jobs, prosperity and opportunity for people regardless of their background whilst plugging critical skills gaps which many businesses face.

Google Senior Director and MD for Technology, Media, Telecoms & Apps, David Black, said:

Digital skills are critical for boosting productivity, unlocking economicopportunities and enabling tech-led growth for every corner of the UK.

Thats why we have visited more than 500 locations across the countryand trained over 1 million Brits with skills that theyve gone on to use to grow their businesses and further their careers. Were delighted to be working with the Government to share our expertise and to help teach the skills needed to address the UKs skills gap.

John Boumphrey, VP and UK country manager at Amazon said:

At Amazon, we know that investing in skills is vital to business successand employee satisfaction. Bringing together the public, private and education sectors is critical to creating the initiatives and pathways that we need to create the workforce of the future. We are eager to rise to that challenge, whether it be creating thousands of apprenticeships, new retraining opportunities for people in the middle of their career, or better routes into work for those from underserved or under-represented backgrounds.

Chief Operating Officer, BAE Systems Air sector Ian Muldowney said:

As a former apprentice and now an industry leader, I can attest to howcrucial apprenticeships are to BAE Systems and our wider supply chain. They ensure the next-generation of skills and ingenuity are maintained through a pipeline of talent which enhances our programmes, strengthens our workforce and supports UK sovereign capabilities.

CEO of Travis Perkins plc and Construction Leadership Council Industry Sponsor for People & Skills Nick Roberts said:

Todays conference brings together senior Ministers from Governmentand Industry Leaders to address one of the biggest challenges facing the UK; the skills gap. Construction makes a significant contribution to the UKs economy (just under 9% GDP), so addressing this and developing a more diverse and skilled workforce is vital.

The Construction Leadership Council has set out a clear plan for how totackle these challenges by creating more entry routes for high-skilled, well-paid jobs, encouraging businesses to invest in their workforce and to adopt modern methods of construction, particularly focused on the transition to net zero. Working in partnership with the Government is paramount, if we are to deliver this plan and create a built environment that we can all be proud of.

Caroline Prendergast, Chief Learning Officer at KPMG UK, said:

At KPMG, we recognise the important role we play in creating careeropportunities and providing future generations with the skills they need to become the business leaders of tomorrow. Our apprenticeships are vital in helping to widen access to our profession, including from a social mobility perspective. Currently, a quarter of our 3,750-strong student population are apprentices, and were incredibly proud of them.

With careers ranging from paralegal, data and analytics, consulting totax and accountancy, our apprenticeships provide a highly valued route to qualification. Alongside the core curriculum, we also focus on both essential and future skills, ensuring all our new recruit have what they need to really thrive in their career.

Ian Elliott, Chief People Officer at PwC, said:

The UK needs an upskilling revolution. Our countrys long-termeconomic and social prosperity depends on the next generation of workers being equipped for an AI-powered world.

Government cannot solve the skills challenge alone. Businesses cannotexpect education providers to anticipate evolving business needs. We have a responsibility to use our positions as progressive employers to collaborate across the public and private sectors to advance and innovate education pathways to meet need and aspiration.

Cathryn Ross, Director of Strategy and External Affairs at Thames Water, said:

To get the workforce we need we must invest in skills so people can havesuccessful and sustainable careers. Expanding our apprenticeship schemes and welcoming T-Level students is crucial to our plans to build a pipeline of skills from our communities and from the education sector.

We are committed to investing in future talent to ensure we have adiverse and inclusive workforce that represents the customers we serve and were excited to be offering further access to career opportunities to drive social mobility and provide good work for all.

Neil Morrison, HR Director at Severn Trent said:

We have the opportunity to make a difference, so were proud to be partof a moment that is helping encourage building skills. Were passionate about ensuring people, and businesses have access to the right skills and tools, and Skills for Growth fits in with our own commitment in helping people into work. Creating more opportunities for people to reach their potential, and creating a fantastic skills network in the UK and talent pipeline, which is both great for our communities and the local economy.

Estelle Hollingsworth, Chief People Officer, Virgin Atlantic, said:

Aviation contributes enormously to the vibrancy of the UK economy,creating the high-quality jobs and skills needed to spur growth and future- proof the UK workforce. Early career pathways that encourage a diverse talent pipeline and address STEM skill gaps can be maximised through an accessible and flexible apprenticeshi

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