Terry Watts, chief executive of Proskills comments on the announcements during the Comprehensive Spending Review. Should we breathe a sigh of relief, or wait with baited breath in hope that the same mistakes aren't made again?
For months, the effects of the oncoming CSR loomed over us, hanging above our heads like a dark cloud as many waited to be drenched in bad news. Warnings of harsh, bitter and icy cutbacks made up the forecast, and with a huge budget deficit to tackle many were preparing themselves for cold and dark times ahead.
However, George Osborne's proposed cuts - although far reaching - maybe weren't as savage as first thought. Although cuts will be felt across the board there are few positives that, if managed correctly, could lay down solid foundations from which the economy can build on.
Cuts to the department of Business Innovation and Skills, unprotected through the coalition agreement, could have been worse. We've been told that BIS is to face £400m in cuts, with business secretary Vince Cable to find annual savings of 7.1% within the department.
"Careful attention must be paid to how the remaining money and resources are re-invested into training and up-skilling Britain's workforce"As part of the cuts, it was announced that 24 quangos will be slashed as well the Train to Gain Scheme being abolished altogether. Colleges will also have more freedom from centralised targets, although they will be expected to make further efficiency savings in return.
Therefore, potentially, amidst the debris, it seemed to emerge the possibility of developing a more user-friendly means of accessing skills training and funding, by getting rid of the inadequacies that were in place.
This could mean that a lot of red tape and bureaucracy will be reduced across the skills system, and although the abolition of duplicate, complex offerings is a largely positive move, careful attention must be paid to how the remaining money and resources are re-invested into training and up-skilling Britain's workforce.
Proskills helped a lot of companies in our industries benefit from Train to Gain but the bureaucracy associated with the scheme meant that a lot of money was wasted on inefficiency. We welcome any improvements to the system that will make it easier for our employers to find the support they need to train their workforce. We have repeatedly shown that sector skills councils (SSCs) are the most effective way of engaging with employers across all sectors of the economy and we will continue to work with Government to ensure the voice of our sector is heard.
The removal of centralised targets for colleges is also welcome but there will still need to be safeguards to ensure that the training they provide matches the real needs of industry, and is not just the easiest to deliver or the most cost effective for the college.
The chancellor also confirmed that there will be a 50% increase in adult apprenticeships funding, which will help an additional 75,000 people into vocational training each year by the end of the four year review period.
"It will be important for the Government to understand the needs of employers across all of the sectors of the economy, and to use the intelligence gathered through SSCs to help develop the right solutions as the changes announced today are implemented."
This is potentially a good move as apprenticeships are an important way of training people for real jobs, and any increase in funding is welcome. However, a one-size-fits-all approach will not always work. Our industries also use a number of other, equally effective, ways of training their people. It will be important for the Government to understand the needs of employers across all of the sectors of the economy, and to use the intelligence gathered through SSCs to help develop the right solutions as the changes announced today are implemented.
It would be an unwise move for the coalition government to seek out advice on budgetary spending in BIS the same way the last government did. By all means restructure the way in which money is spent, remove centralised targets for colleges and increase the amount of funding for adult apprenticeships – but do it in a way which helps Britain's industries the best.
SSCs are in place to give advice on real issues that are effecting our industries. We hope that with the need to rethink how to get the best out of the money that is spent, that SSCs will be called upon to help the government and the industries they represent.
It is clear that the Government means business in its reform of public finances, but we hope this doesn't simply translate into a general dilution of what BIS does, but heralds a more radical review of how it is done, and can be done most efficiently.
Terry Watts is Chief Executive of Proskills Group. Proskills is the sector skills council for the process and manufacturing sector. One of a network of employer-led SSC’s across the UK, Proskills is a not-for-profit organisation, whose role is to raise the skills levels and competitiveness in the 80,000 workplaces and 800,000 employees that make up the sector
