BusinessLDN-led skills blueprint for the capital helping more Londoners into training and jobs, according to a new report
An ambitious roadmap for getting more Londoners into good jobs is helping to close skills gaps across the capital by boosting partnerships between employers and educators to support investment in new facilities and co-create courses. That’s according to the latest progress update on the Government-backed London Local Skills Improvement Plan (LSIP).
Led by BusinessLDN, in partnership with the Federation of Small Businesses London, London Chamber of Commerce and Industry and CBI London, the LSIP was published in August 2023 following engagement with more than a thousand employers, training providers and wider stakeholders.
Its achievements to date include a 4.3% rise in apprenticeships starts across the capital in the academic year after its launch, completion of more than 1,000 work experience placements backed by the UK Shared Prosperity Fund, and a significant increase in employers signing up to the Mayor’s Good Work Standard, which accredits firms that go the extra mile to support staff.
Various initiatives across the capital have been supported by the LSIP, including a new West London Retail Skills Hub to support jobseekers into that sector, LSIP-funded apprenticeships facilitated by the charity Workwhile, and thousands of refurbished devices provided to Londoners at risk of digital exclusion through the Get London Online campaign.
Muniya Barua, Deputy Chief Executive at BusinessLDN, said: “The roll-out of the London Local Skills Improvement Plan is helping to future-proof the capital’s labour market by bringing together employers, educators and London government to ensure more people are equipped for the jobs of today and tomorrow. There is still work to do, however, with significant numbers of firms still reporting skills gaps, particularly in high-growth sectors such as tech and life sciences. We are working closely with the Greater London Authority as it develops its new Inclusive Talent Strategy, and the Government as it reforms the national skills system, to ensure more workers have the skills they require to succeed in the world of work and firms can hire the people they need to grow the economy.”
The progress report identifies further steps needed to close persistent skills gaps and ensure upskilling opportunities keep pace with a rapidly changing labour market, including as new technology and artificial intelligence reshape the future of jobs.
This work will align with the Greater London Authority’s new Inclusive Talent Strategy, aimed at “developing an increasingly employer-led and integrated skills and employment system.”
At the same time, the LSIP will support a new nationwide post-16 Skills Strategy, encompassing reforms to the apprenticeship levy, being developed by the Government’s Skills England agency. The organisation aims to help businesses to boost their workforce and get more people into skilled jobs faster, enabling growth and opportunity.
The Rt. Hon. Jacqui Smith, Minister for Skills, said: “I am pleased to see the progress being made to bring the London Local Skills Improvement Plan to life. We remain committed to the LSIP model as part of our Plan for Change, and have strengthened the role that Mayors and Strategic Authorities will play in identifying and addressing the local skills issues in the plans. Skills England will work hand-in-hand with businesses, education providers, Mayors and Strategic Authorities, unions, and other bodies to tackle skills shortages, co-creating solutions to ensure more opportunities for young people and existing workers wherever they are based in the country.”
The new progress report highlights how the LSIP is helping to shift the dial on skills including:
- A survey of more than 1,000 business leaders in the capital which shows 42% of respondents are engaged with independent training providers (up from 33% in 2023), 37% are engaged with Job Centre Plus or other employment service providers (up from 30% in 2023) and 34% are delivering apprenticeships (up from 27% in 2023). The same study finds that close to four in ten (38%) of firms say they have gaps in skills and capacity among their current workforce (63% say they have the skills and capabilities to meet business needs), with cost seen as the biggest barrier to providing training for staff1.
- New analysis from Lightcast for the academic year 2023 – 24 which shows a 38% increase in apprenticeship completions in London related to the LSIP’s priority sectors compared to the previous academic year. The Lightcast research also shows a significant uptick in enrolments for Further Education (FE) qualifications across priority sectors in the city, including 9,090 in Building and Construction (up 12% on the previous academic year), 7,608 in ICT (up 42% on the previous academic year) and 4,787 in Business Management (up 10% on the previous academic year).
- A survey of 18 major FE institutions across the capital which finds that 94% of respondents agreed that actions linked to the LSIP are having a positive impact on meeting employers’ skills needs and getting more Londoners into jobs whilst 6% disagreed (up from 86% in agreement and 14% in disagreement last year).
Anneka Hendrick, Regional Director, London and South East at Confederation of British Industry London, said: “We all know that skills shortages remain a key concern for London’s businesses. The Local Skills Improvement Plan shows the progress we can achieve when business, educators and government work together, particularly in high-growth sectors. By focusing on digital, green and transferable skills, and building on steps already taken by the GLA and through national reforms, we can continue to equip Londoners for the jobs of tomorrow and ensure businesses have the talent to drive growth and innovation.”
Liz Giles, Policy and Communications Director at London Chamber of Commerce and Industry, said: “By putting employers at the heart of the London Local Skills Improvement Plan, we’re now seeing tangible results, including a rise in apprenticeship opportunities and a stronger collaboration between industry and training providers. This is a vital step towards a more inclusive, responsive and resilient labour market and we must continue to build on this momentum. The LCCI is proud to be working alongside partners to ensure London’s workforce is equipped for the future and that businesses can access the talent they need to thrive.”
Laura Timm, London Regional Chair at the Federation of Small Businesses (FSB), said: “This report demonstrates real progress in making London’s skills system more responsive to the needs of small firms. Small businesses are a key part of London’s economy and it’s vital they’re not left behind. The LSIP is helping to close gaps by boosting employer engagement and expanding access to training, but there’s still work to do, particularly in tackling cost barriers and ensuring digital and green skills are accessible to businesses of all sizes. Continued collaboration remains key to building a workforce that supports growth and innovation across the capital. FSB is proud to be a partner in helping drive this change.”