Business West, the region’s largest business organisation, has welcomed the focus on skills in the government’s new industrial strategy – but fears that the West of England would again miss out when it comes to funding.
Prime Minister Theresa May launched the long-awaited strategy and its associated green paper earlier this week.
They set out a clear commitment to reverse years of falling productivity by investing in science, research and innovation, boosting vocational skills for non-graduates and upgrading essential infrastructure.
Phil Smith, pictured, director at Business West – which runs Bath Chamber of Commerce – said the skills gap was widening in the Bath area so it was vital to encourage more young people to study STEM subjects – science, technology, engineering and maths.
“Industrial strategies have come and gone over the years, and few have really had any lasting effect because they have lacked support from the government,” he said.
“However, the latest seems to have at its heart perhaps the greatest challenge we have in UK industry – the lack of skills development.
“The Green Paper talks of a string of new Institutes of Technology in England and Wales for students from 16 to 19 years of age. Students will get solid trade skills -particularly in engineering and construction.”
He described the new emphasis talked of by Business Secretary Greg Clark on vocational skills for non-graduates as “absolutely right”, adding: “Our young people need to know all options available to them and the job potential linked to each option
“For some, university is a good option but it is not good enough to leave university with a degree alone. At graduation, students also need to have tangible skills to put in front of an employer. Our surveys show businesses constantly calling for this.”
He said being an apprentice was an alternative option for a young person who wants to develop their skills in the world of work – and there were great opportunities at world-class companies in this region such as aerospace giant Airbus in Filton, and advanced engineering group Renishaw in Wotton-under-Edge.
“And the Higher Apprenticeship degrees at university enable the bright young stars to be paid as they get their extra qualifications,” he said.
However, he added: “While the government rightly pushes apprenticeships, I am afraid that they have not done a great job so far in selling the advantages of the apprenticeship levy – to be introduced this April.”
Business West is planning information seminars on the levy with local colleges.
Mr Smith added: “The Green Paper promises a blitz to boost productivity – easier said than done. In the UK, we lag behind our overseas competition, and as a result are often uncompetitive on price.”
And he said that while Greg Clark announced £556m for the so-called Northern Powerhouse, centred on Manchester, “what I believe is required is a recognition that the South West is also something of a powerhouse.
“So, where is the government support for our dynamic region? We hope that this region is going to get a greater slice of the government’s support cake sooner rather than later.”
He also said, while the government’s intentions in the industrial strategy are obviously good, there appeared to be a larger degree of business intervention than ever before.
“It does remind me of the Michael Heseltine mantra when he was in charge of business for the government. He said he was prepared to intervene before breakfast, lunch and dinner.
“Business generally likes to do its own thing and not be told what to do by politicians. Government should set the conditions for business growth then get out of the way and let business do what they do best.”