Rt Hon Priti Patel MP, Nadhim Zahawi MP, Thérèse Coffey MP and Kwasi Kwarteng MP
11 October 2021
Dear Secretary of State,
I am writing to you on behalf of education and business leaders across the cities and regions of the UK. We are at a critical moment in the recovery — we welcome the commitment to reskilling across the economy but are also concerned that the lack of agility in the existing skills system combined with a lack of short-term flexibility in the immigration system risks making the recovery precarious.
The country faces a complex challenge. On the one hand, the serious labour shortages across the hospitality, social care, food processing, and transport sectors are reaching crisis point. On the other, uncertainty in how the labour market will change now furlough has ended, and the need to give the Government’s ‘back to work’ support time to gear up to operate at full tilt, means further short-term action must be taken quickly to avoid further escalation.
The SAWS scheme filled many vacancies in agriculture, and the recent issuing of 5,000 temporary visas to HGV drivers has made a start on improving the situation, but more is needed. Together, the Home Office, Department for Education, Department for Work and Pensions, and Department for Business Energy and Industrial Strategy should form a joint strategy to ensure the labour market need is met as best it can be. This should include the ability to implement a temporary recovery visa for industries where there is clear evidence of labour and skills shortages.
However, we all acknowledge that this can only be a short-term part of the answer. Employers are committed to investing in the skills and retraining the economy needs. To drive the recovery and support the transition to a post-Brexit economy, more funding needs to be unlocked, including through the National Skills Fund, and further powers devolved to city regions to create an effective business-led reskilling programme.
Alongside the extended jobs support scheme, as part of this new strategy the Government should consider:
- Devolving National Careers Service funding to create effective Careers Services;
- Increasing powers and funding to support employees from sectors that have suffered the most during COVID-19 via Adult Retraining Schemes; and
- Expanding the apprenticeship system, including by creating Apprenticeship Funds targeted at small firms and sectors most affected by Covid-19.
These actions will help local workers acquire the skills needed quickly and get them into jobs, and overall accelerate the UK’s road to recovery. We believe that it is only through the Government and business leaders working together that we can manage the short-term crisis and plan ahead for a strong economy.
Yours sincerely,
John Dickie, Chief Executive, London First
Dr Diana Beech, CEO, London Higher
Geeta Nanda, Chief Executive, Metropolitan Thames Valley Housing
Jace Tyrell, Chief Executive, New West End Company
Jane Patterson-Todd, CEO, Cambridge Ahead
Jonathan Murphy, Chairman, North West Business Leadership Team
Ray Newton, Advisor to the Chairman, Edwardian Hotels London
Leigh-Sara Timberlake, Group CEO, Business South
Michael Kill, CEO, Night Time Industries Association
Nilesh Parmar, Interim CEO, Arcadis UK & Ireland
Roy McGowan, Managing Director, Momentum Transport Consultancy
Ros Goode, Principal and Regional Managing Director London, Avison Young
Turancan Salur, General Manager UK, Getir
Basil Scarsella, Chief Executive Officer, UK Power Networks