BusinessLDN is calling for a new public-private partnership to rapidly train Londoners in highly sought-after advanced digital skills, which could boost the UK economy by billions of pounds.
As the lead employer body spearheading London’s Local Skills Improvement Plan (LSIP), BusinessLDN has consulted more than 1,000 business, education providers and other stakeholders over the past year to develop an ambitious blueprint to match the skills businesses need with those being delivered by the education system. Its research highlighted the need to close digital skills gaps, with more than half of firms surveyed as part of the programme citing the need for advanced digital skills (ADS) as a priority.1
In a new report, Pioneering Advanced Digital Skills for All, as part of phase two of the LSIP, BusinessLDN has set out the actions needed to accelerate the roll out of ADS in the capital. It cites research carried out on behalf of Amazon Web Services which found that improving provision in ADS could increase annual GDP in the UK by around £68 billion each year, through a boost to productivity and workers’ incomes. It comes as the Prime Minister has pledged to make London the AI capital of the world and as the Skills Funding Agency estimates that 90% of roles will require some level of digital skills by 2030, covering areas such as artificial intelligence (AI), cybersecurity and digital entrepreneurship.
Among the measures the report is calling for are: for the Mayor to make ADS provision central to his new Growth Plan for London, the creation of a new public-private partnership between employers, education providers and London government to co-create and fund ADS programmes, and for the Government to deliver further devolution of skills funding to the Mayor so action can be targeted where it is needed.
Muniya Barua, Deputy Chief Executive at BusinessLDN, said: “The capital’s labour market is at the sharp end of a new technological revolution, and it is critical that we ensure Londoners are equipped for the jobs of today and tomorrow. This requires improved collaboration between employers, policymakers and training providers to ensure Londoners develop the advanced digital skills that will enable the capital to be a global AI leader. That’s why we’re calling for the Mayor to make advanced digital skills a central focus of his new Growth Plan and for him to lead the charge on developing a new public-private partnership to co-create and fund the training that Londoners will need to compete in a rapidly-changing labour market.”
The report recommends that the Mayor:
- Establish a London ADS Talent Programme, bringing together the Greater London Authority, education providers and business groups to co-fund and co-design training programmes which are aligned with workplace needs, similar to a successful programme created in New York.
- Work with national government to make digital skill development a focus area for the soon-to-be-established Skills England, ensuring that ADS are central to programmes funded by a new Growth and Skills Levy, which the body will oversee.
- Make the case for the establishment of a devolved London Careers Service, designed to more effectively support and signpost Londoners seeking opportunities; press for control over Skills Bootcamps for Londoners whilst providing long-term funding certainty for the Mayor’s Skills Academies; and lead by example by making transferable skills, such as good communication, a part of London ADS programmes funded by central government.
It calls on training providers to:
- Work with the GLA to create a new Centre of Excellence, where providers and large tech employers share best practice on ADS provision to inform development of future initiatives.
- Work more closely with technology companies, awarding bodies and provider representative bodies to align training provision to industry need.
- Use funding from the GLA which is not already allocated to specific training areas to support digital skill development, with a focus on programmes which provide a pathway to more advanced training.
It calls for businesses to:
- Work with providers to fund a Train the Trainer Programme to get private sector expertise into education settings on a regular basis and support co-designed courses which encompass workplace experience.
- Help establish a Careers and Training Virtual Hub as a business-led component of the London Careers Service, focussing on career support, job matching and the running of webinars focused on careers advice.
- Create partnerships within supply chains to promote and spread opportunities for ADS training and recruitment.
The LSIP is a government-backed programme developed in partnership with the Federation of Small Businesses London, London Chamber of Commerce and Industry (LCCI) and CBI London. Its blueprint for addressing skills shortages was published in May 2023 and calls for the launching of a new one-stop-shop to support job-seekers, creation of 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 capital2.
Notes to editors
1 Survation interviewed 1,209 business leaders on behalf of BusinessLDN between 6 – 17 February 2024. When asked about which skills are most needed over the next two to five years, participants also flagged sector-specific technical skills (47%), basic digital skills (34%), cross-cutting transferable skills (33%), basic maths skills (27%), English skills (26%) and green skills (24%).
2 The LSIP aims to get more Londoners into better, higher-paying jobs by helping to match training provision to employer demand. It identifies the need to help employers navigate the complex and fragmented skills system and 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.