The London Local Skills Improvement Plan

The London Local Skills Improvement Plan

Businesses across all sectors in London are struggling to recruit people with the skills they need to grow.

At the same time, London has one of the highest unemployment rates in the UK with those from black and minority ethnic communities already more likely to be lower- skilled, out of work or living with in-work poverty. 1 in 5 Londoners are economically inactive – outside of the labour market. It is critical for business, educators and Government to work together to support all Londoners to develop the skills they need to access the jobs employers are trying to fill. 

The LSIP story

What is a Local Skills Improvement Plan, and how will it help London?

Local Skills Improvement Plans (LSIPs) are an employer-led initiative funded by the Department for Work and Pensions. Every English region has an LSIP, and they play a key role in tackling skills shortages by bringing employers, educators and other key stakeholders together to create a blueprint for transforming the skills system to meet local needs.

BusinessLDN is proud to be leading the Greater London LSIP working jointly with the Mayor of London and the Greater London Authority. The LSIP is delivered in partnership with the Capital’s business community — The Federation of Small Businesses London (FSB), London Chamber of Commerce and Industry, The Confederation of British Industry London (CBI), and West London Business — as well as its sub-regional partnerships — Central London Forward, Local London, South London Partnership, and West London Alliance.

Together, we have created a data-driven plan for better matching post-16 training provision to employer skills demand and the needs of London’s economy. This will help employers meet their skills gaps, fill vacancies and ultimately get more Londoners into jobs.

LAUNCHING THE PLAN

The inaugural London LSIP was launched in summer 2023, and our new LSIP, launched July 2026, builds on this. The London Local Skills Improvement Plan (LSIP) sets out a blueprint for getting more Londoners into better higher-paying jobs by better matching training provision to employer demand. The report outlines a roadmap to transform London’s skills system, with actions for employers, job-seekers and training providers. The 2026 LSIP is updated to reflect employer skills needs and challenges as they are today.

Read the LSIP annexes for London’s four sub-regions:

The London Local Skills Improvement Plan

July 2026

The London Local Skills Improvement Plan (LSIP) sets out a blueprint for getting more Londoners into better, higher-paying jobs by better matching training provision to employer demand.  

The LSIP identifies the need to help employers navigate the complex and fragmented skills system. It also highlights four cross-cutting themes that should be prioritised to future-proof the capital’s jobs market: digital skills, green skills, transferable skills and labour market inclusion. Among it’s recommendations are launching a new one-stop-shop to support job-seekers, creating a London Recruitment and Skills Support Hub to help businesses navigate the fragmented skills landscape and steps to boost digital and green skills across the capital.  

The report outlines detailed recommendations to improve London’s skills system for employers, job-seekers and training providers, and includes action needed at the sub-regional level. 

Find the report here or click the image to the left. We have also shared the annexes to the report, download them here. 

We have also shared the full report in a simple PDF version and the full 16 annexes to the report, download them here.

Partners

Sub-regional partners