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CBI calls for reform to £4 billion adult skills system

With public finances under pressure the government has been called upon to reform the funding of adult skills and training support.

The Confederation of British Industries feels that steps need to be taken to increase UK competitiveness and help people find and hold onto jobs during the recession.

The business group has published Reforming skills funding – delivering productive results, which sets out how the Government could do more with limited public funds and get a better result. It comes ahead of the Government’s skills White Paper, due to be published later this week.

The CBI proposals include cutting back on ‘nice to have’ but non-essential training courses. It also calls for the redirection of some funds away from basic skills training, where the Government has already exceeded its 2010 target, towards higher-level skills – addressing skills shortages in areas as such as science, technology, and engineering.

Sarah Green, Regional Director, CBI North East said: “The Government must put the £4 billion of public money it spends on adult skills to more effective use, especially when there is pressure on the public finances and on business competitiveness.

“Tough choices need to be made. Public spending must be focused on the valuable skills that will drive growth and employment prospects.

“Businesses themselves spend a massive £39 billion a year on training and know the value of developing staff, even when times are tough.

“Raising workforce skills relies on a partnership between the government, employers and employees. But firms need a much simpler, more flexible system of public funding to help develop higher level skills. The challenge is to make businesses in Britain more competitive, and to give individuals the productive skills required to sustain employment.”

For further information on the CBI’s proposals, you can view the document at the CBI website.

This was posted in Bdaily's Members' News section by Ruth Mitchell .