CBI calls for business-led skills reforms that stick

The study, In Perfect Harmony, argues that 28 skills reforms in 30 years have alienated firms, confused learning providers and failed to deliver on skills needs.The CBI is therefore urging policy makers, businesses and providers to collaborate and design a stable national framework for skills, one where the government’s role is to regulate for quality, rather than designing qualifications. The business representative body, which speaks on behalf of 190,000 companies of all sizes and sectors, says businesses are clear the current reform programme can meet skills needs, if the government reflects all views on new T-Levels, apprenticeship reforms and the National Retraining Partnership.

Apprenticeship levy a case in point?

Neil Carberry, managing director for people policy cites the Apprenticeship Levy as the latest example “of a policy that’s not yet right.”His view aligns with the CIPD and its latest finding that the levy for larger employers is backed only by 17% of those currently paying it.The professional body for HR and people development's survey found many employers regarded the Apprenticeship Levy as an extra tax burden, rather than as a sustainable way to improve workforce skills and productivity – a key pillar of the government's Industrial Strategy.

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Reforming the national skills framework 

Commenting on the CBI's new report, and the opportunity for government, education providers and employers to collaborate more closely, Mr Carberry, said, “Skills are vital if we are to adapt to new technologies, increase our global competitiveness and deliver higher wages.“They are the very heart of a successful industrial strategy. But that means we need a skills approach that lasts for 50 years, not five.“Too often skills reforms have been well-intentioned, but do not work for learners or businesses across the country, so the system is reinvented again.”

'Stable skills plan central the Industrial Strategy'

The business representative body’s conclusions reflect the priorities the CBI outlined at the end of last year at its annual conference. Here, business leaders identified that people, infrastructure and productivity should be the three main pillars of the government’s industrial strategy, which would also raise wages in the longer term.“There is an opportunity now to establish a stable framework for skills in England – by the government reviewing the Levy and creating a world-class technical system through T-levels,” continued Mr Carberry.“If we all work together to get this right, confidence can be built that the English skills system won’t keep changing, enabling firms and skills providers to invest. “Companies need to get stuck in and engage to help create a more flexible and business-focussed skills system that will benefit their people, their business and the local economy.”

Key CBI recommendations on skills reform

The report is calling for government and policymakers to:

• making a national, stable and joined-up skills plan central to the government’s Industrial Strategy, which is developed and delivered with business and skills providers 
• giving the Institute for Apprenticeships and Technical Education the power to regulate and report on the performance of the skills market
• evolving the Apprenticeship Levy into a flexible skills levy, so firms can fund training for their people whatever high-quality course they do
• piloting local Apprenticeship Levy pooling in at least four English regions – and roll out a full system by 2020 – to better engage smaller firms in new training clusters
• encouraging firms to commit to engaging with skills at a senior level – and assign staff time to ensure provision meets their needs
• supporting local leaders, including LEPs, Mayors, businesses and learning providers, to create local skills plans that address their skills demands.

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Read more about the future of the UK business in the Winter issue of our magazine 

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