Skills for survival: Shaping the future skills agenda
A skilled workforce is critical at even the best of economic times; now that we face a recession, the skills agenda has become an even more urgent priority for business and Government. This is why the Core Cities Group is working to influence changes that will empower cities to more effectively provide the skills that are demanded by local businesses. A major milestone in this work has been our agreement with the Department for Work and Pensions (DWP), Job Centre Plus (JC+) and the Learning and Skills Council (LSC), on a ‘Framework of Principles’ for skills and employment.
This framework builds on the work we have already undertaken with our partners and Government. We have already contributed to influencing change in the national policy framework in this area, and many of the reforms introduced by Government over the past year will go some distance to empowering such local action. The Sub National Review gives a strategic leadership role to local authorities in skills for 14-19 year olds, with the devolution of 16-18 funding (subject to consultation). In addition, the LSC will be replaced by two national skills agencies—one for young people and one for adults.
However, the real test of all of these new arrangements is whether they will produce better performance in the most deprived and economically vulnerable communities. To have a full impact, services for skills and employment need to operate across administrative boundaries and travel to work areas—i.e., city regions, whilst recognising that the Core City at the centre has a special role to play. Thus, whilst we agree with the changes that are being made at the national level, it is important to continue to coordinate the efforts of a variety of agencies aimed at increasing skills and employment across economic areas.
It is to this end that we have developed the new framework of principles with DWP, JC+ and LSC to continue to promote greater integration, the piloting of new approaches and a reduction in bureaucratic arrangements at the local level.
By agreeing these principles we are taking the next step to providing cities with the tools they need to ensure that the workforce in our cities can adapt to the new circumstances of a shifting economy.
- City region partnerships: We will recognise the primary importance of the functional economic area – the city region – as an important spatial level for commissioning, funding, strategy, delivery and management of programmes for skills and employment, with input from LSC and JC+
- Strategic integration: We will work to integrate programmes for skills with those for employment within functional economic areas and align strategies for skills and employment with those for: spatial planning; housing; transport; and economic development.
- Working together at a local level: We will work toward further delegation of investment and commissioning at a sub-region and city level as a matter of principle, avoiding competitive funding regimes and jointly participating in the relevant governance mechanisms.
Several Core Cities have already set up partnership arrangements to deliver at this spatial level through Multi-Area Agreements (MAAs) and Skills Boards. Moving forward, the recent positive announcement in the Budget 2009 awarding both the Leeds and Manchester City Regions statutory status will provide a route to build on these existing structures. Forerunner classification will allow them to accelerate the development of city regional management of their skills infrastructure.
Both cities and their regions will have the opportunity to develop the skills policies contained within their city region development plan. Work has already started on developing Employment and Skills Boards. These employer led Boards will aim to set the strategic direction for skills provision across the city region, therefore shaping the skills agenda to fit the future employment needs of the sub region.
Although only two cities received forerunner status this announcement was a great success for the Core Cities group and the devolution agenda. Acknowledging this positive step forward, the Core Cities Skills group will continue to work with Government and its agencies to encourage further skills devolution to the other cities and regions.