In the wake of Brexit, the UK’s economy is in a transitional phase. As many have noticed, there are long lines for petrol and fewer items on shelves that cost more and these disruptions are making everyday life more difficult. There are various contributing factors to this: demand in the UK economy has recovered from the low levels seen during the pandemic more quickly than supply. Perhaps the most critical though is immediate labour shortages. The UK’s workforce has too few people with the necessary skills that enable supply chains to function.
These issues have been weighing heavily on the mind of business leaders, especially in London. The Government argues that employers are too reliant on ‘cheap’ labour from the EU, and business leaders rightly refute this. The reality is that over successive years, the UK has failed to invest in reskilling and retooling the workforce to meet labour market needs. We have seen a continuing cut in adult education budgets, hindering the ability to invest collectively in developing London’s workforce.
Solving the challenges of London’s skills needs won’t be easy. Still, we could start by addressing the issue through greater collaboration between businesses and the further education sector with a holistic, London-wide approach. College Business Centres, proposed in the Skills for Jobs White Paper, could create closer relationships and mitigate skills and labour challenges through supporting education provision endorsed by local employers. At Collab Group, a membership body representing some of the UK’s and London’s largest colleges, we are working with our network to devise a template for these centres. Our goal is to turn College Business Centres into hubs for innovation and enable stronger collaboration between education and employers. College Business Centres would give employers greater influence over skills training and allow colleges to meet their local labour demands.
A huge portion of London’s population works in the retail and hospitality sectors, but the pandemic caused many restaurants and shops to adjust their business strategy or risk closing. We believe that College Business Centres could play a key role in the recovery of these sectors, acting as a one-stop-shop for businesses looking to recruit talent, upskill their current workforce, and improve process and productivity. This would allow colleges to help employers strategically plan for current and future skills needs, creating a long-term skills solution for both workers and employers that would truly allow London’s core sectors to Build Back Better.
The UK’s economy is in transition. The last five years have seen two major events that have seismically altered the London economy: Brexit and the Covid-19 pandemic. How does this impact the ability of London to reimagine and reskill its vast workforce? College Business Centres will be critical to supporting London businesses and keeping the workforce of the UK’s only World City highly trained and capable of responding to the city’s needs. To achieve this goal, we would love to work with London First business members to shape these College Business Centres to meet their needs.