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News: How the Skills and Growth Levy will affect businesses like yours

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From Maxine Blake - Head of Employer Engagement

Keir Starmer’s latest announcement regarding the proposed Skills and Growth Levy is a pivotal moment for employers and the broader educational landscape. While the details remain somewhat vague at this stage, one thing is clear: the Labour government is positioning itself to take a more hands-on role in driving forward skills development, and in doing so, they hope to create a more agile and future-ready workforce – a wave that we, at Nottingham College, are already riding. 

As Head of Employer Engagement at Nottingham College, I know first-hand how the introduction of new initiatives like this can affect employers. It’s early days in knowing what this will mean specifically for businesses, but there are a few things we can be excited and reassured by. 

Opportunities ahead

The shift in name, from what was previously the Apprenticeship Levy, to the new Skills and Growth Levy, suggests Labour’s ambition to move beyond simply funding training programmes and apprenticeships, and to look more holistically at meeting the needs of industry. 

For example, by focusing on developing younger talent, the government is aiming to align training with its broader industrial strategy. The goal is to ensure that our workforce across the country is prepared for the future with a pipeline of skilled workers in place and that we are shaping this generation of talent from the very earliest opportunity. 

Through this new Levy I also anticipate an opportunity for businesses to lobby the government with a broader conversation – something that Nottingham College is already well versed in through our strong local government and civic partnerships across the region. This political opportunity could be an impactful way to ensure that local skills gaps are addressed, with training provision and funding tailored to meet local needs here in Nottinghamshire. 

The government’s decision to move quickly on these changes is encouraging. The search for a new Skills England CEO, who will report to the Department for Education’s director general for skills Julia Kinnburgh, is already underway. From my point of view I hope that this will result in an appointment of a senior leader with experience in business, to ensure that the needs of employers are kept front and centre. If the incoming CEO can bridge the gap between industry and training providers such as Nottingham College, this will make sure that the right skills are being developed and that employers continue to get the training support they need.

A few unanswered questions

There’s a question mark for me about whether employers may lose influence over setting and shaping training standards, through the introduction of this new Levy. Historically, the swift development of standards in response to market needs has been driven by employer input — for example, the Electric Vehicle (EV) sector has yet to see standards set for many roles, even though the industry and market is rapidly evolving. If the government is slow to respond to these gaps, there is a risk that it could stifle innovation and slow down the hiring process. 

We’ve spoken to numerous large employers across the region who have previously felt the frustration of funding restrictions from the former Apprenticeship Levy. With the new Skills and Growth Levy, I would hope that this would allow for more flexibility, so that employers can access a wider range of training programmes through a more agile funding framework. 

The introduction of shorter apprenticeships is also a potential concern. While shorter training programmes could help more people enter the workforce quickly, especially at entry-level positions, there’s a real fear that quality could be compromised, particularly at more advanced levels. Employers that we have spoken to are understandably nervous about whether they will still be able to access the high-quality training they need to develop skilled employees – and this is something that at Nottingham College we will remain firm on delivering.

How Nottingham College can support you

Our Industry Advisory Boards, established to bring together employers and education providers, dive deep into the labour market demands in our region and identify opportunities and threats for our workforce and subsequent skills gaps. These regular meetings provide invaluable insights to inform our training provision to meet the current needs of Nottinghamshire’s most high demand industry sectors.

> Interested in joining our advisory board? Get in touch.

While there is still limited information available about the specifics of the new Skills and Growth Levy, early indicators are promising. I’m heartened by the pace of change and the government’s eagerness to push forward quickly suggests that we could see more clarity in the proposals soon. 

> Stay up to date on more developments of the Skills and Growth Levy by signing up to our newsletter.

As Head of Employer Engagement at Nottingham College, I am committed to navigating this new landscape with a focus on collaboration, responsiveness, and continuous improvement. By working closely with our employer partners, we can ensure that our education and training programmes not only meet the current demands but also anticipate future needs, driving sustainable growth for our local economy. 

> To discuss how Nottingham College can partner with your business to upskill your workforce, get in touch.

Published on:
  • 30th October 2024 (9:25 AM)
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