In the article, he argues that sectors should be given the freedom to act on training and skills levies.

He says:

“Historically, we've failed to get to grips with the skills challenge. That has resulted in critical skills gaps and flatlining productivity. We cannot get growth without a skilled UK workforce that can grasp the opportunities of AI and other new technologies, allowing it to compete in global markets and move to a net zero economy.

“So, what type of policy mechanisms are needed to support the development of the skilled workforce to grow the UK economy? An OECD report on the use of skills levies has highlighted the growing importance of investing in workforce skills to enhance productivity and growth. It emphasies that skills levies can play a crucial role in addressing skills shortages and improving the overall quality of the workforce. It found that countries that have implemented skills levies have seen positive outcomes in training participation rates amongst employees.”

Graham makes the case for why the one-size-fits-all Apprenticeship Levy for all sectors introduced in England by Theresa May's government in 2017 doesn’t work because it is controlled and administered by government, not industry, resulting in many employers not engaging or pulling back due to the complexity and rigidity. While he therefore supports the current government’s proposals for a new Growth & Skills Levy, he says:

“If we're to achieve economic growth then levies must be sector-based and managed by employers and employees, not by Department for Education or Skills England officials. Taking the latter route risks the processes becoming even more complex than the present arrangements.”

Graham then goes on to set out an alternative model involving sector leadership councils, building on what some sectors have already, which are licenced to run a growth and skills levy in their industry, “allowing them to agree the flexibility needed to deliver the workforce they require” and putting “decision making in the hands of those best placed to shape the way forward.”

Finally, he discusses how the introduction of a Digital Skills Passport could enhance and streamline the provision of evidence to stakeholders that individuals have the right skills for the job.

Read the full article here.

NOCN Group Trustee Stephen Evans, chief exec of the Learning & Work Institute, also appears in the New Statesman Skills Supplement in an article about how the UK gets the skills it needs. Read it here.