Labour has announced a £275 million investment in skills and education as part of its 10 year Industry Strategy.
The funding will be used to start new Technical Excellence Colleges to provide additional training to skilled professionals in areas that “local economies need” like AI and IT systems.
The funding is expected to support the training of thousands of new engineers, programmers and IT technicians by 2029.
It forms part of the government’s ambition to reduce the number of people not in education, employment or training (NEETs), and to reduce domestic skill gaps.
Currently, one in seven young people are classified as NEETs, while the number of people enrolled on apprenticeships has fallen by almost one fifth between 2016/17 and 2023/24.
Business Secretary Jonathan Reynolds said: “To make Britain the best place in the world to do business, we also need the best workforce in the world with the right skills and expertise to thrive.
“Our modern Industrial Strategy will be powered by investing in British people. It will help transform our skills system to end the overreliance on foreign labour, and ensure British workers can secure good, well-paid jobs in the industries of tomorrow and drive growth and investment right across the country.
“Where past governments have watched from the sidelines as British industry has faced under-investment and opportunities have been shipped overseas, this government is leading the way, and our modern Industrial Strategy is a downpayment on a decade of renewal.”
Earlier this month an overhaul of the apprenticeship system was announced with the aim of bringing more school leavers and young people into essential trades and growth sectors.
The plan has however been criticised for removing funding for higher level apprenticeships (level 7), making it harder for university educated workers to transition into the workforce.
Extra funding for the tech sector was also made available as part of the skills drive, with £187 million being invested into the TechFirst programme, expanding the range and quality of tech teaching across secondary schools, university and within companies.
These tech initiatives are designed to prepare all generations for an AI driven future, aiming to provide 7.5 million workers with AI skills by 2030.
Education Secretary Bridget Phillipson said: “Skills rightly run right through the heart of this Industrial Strategy because they are key to breaking the link between background and success for young people and delivering prosperity for our country.
“Our commitment to growing the economy and delivering for people across the country is backed up with real investment, getting thousands of our young people on to courses and into jobs.
“This package builds on the reforms we have already made, slashing red tape and boosting funding to get businesses to invest in homegrown talent, with more people in skilled work and driving Britain forward again.”
The Prime Minister, Sir Keir Starmer, will launch the full Industry Strategy on Monday as part of the government’s 10 year plan for national renewal. Later in the week a new Trade Strategy will be announced, impacting how the UK approaches trade barriers and international supply chains.
Featured image via Martin Suker / Shutterstock.
