In recent months, there was speculation that levelling up would not survive post-Boris Johnson. Through her short-lived premiership, Liz Truss managed to avoid saying much at all on the flagship post-Brexit concept. And now, with a new prime minister, the situation remains unclear.
Despite uncertainty, the need for levelling up is now more important than ever. Inequalities are rife. The cost-of-living crisis is resulting in a huge fall in living standards, day after day we hear the hard choices people are having to make to keep warm and put food on the table. In certain communities and regions, these challenges are significantly higher.
The next stage of levelling up needs to move beyond infrastructure. It must take account of the vital role of skills training in reducing regional inequalities, delivering opportunities and economic growth. Recent research from the Institute for Fiscal Studies shows that children from poorer backgrounds still do worse throughout the education system, so the argument for investing in education and skills to drive levelling up could not be clearer. There are signs that the new chancellor understands this connection, when delivering the Autumn Statement, he remarked that “to be pro-education is to be pro-growth”. True, however, this runs counter to the lack of new investment in post-16 education and skills, and an uncertain future for the UK Shared Prosperity Fund [UKSPF].
The skills element of the UKSPF was set to be a key aspect of the government’s skills investment. Too many still leave school without the basic skills they need to enter the workplace.
Therefore, adult education programmes – such as those funded by UKSPF, like Multiply – are so important for getting people into work. At a time when high inflation rates threaten skills funding, and with functional skills and adult education already underfunded, a clear signal from government that UKSPF funding will not face the chop after the next general election would be very welcome.
Devolution has been a major pillar of the Levelling Up agenda – about 60 per cent of the annual adult education budget spend of £1.5 billion is currently devolved – with further devolution deals in transit. The government’s ambition for a devolved system across all of England by 2030, presents both risks and opportunities to the skills sector. Devolving commissioning can of course lead to more work and bureaucracy, but there are now more opportunities for providers to bid for funding. Plus, more localised decision-making means spending priorities should better reflect local needs.
That’s where Local Skills Improvement Plans [LSIPs] come in. Introduced as part of the Skills and Post-16 Education Act 2022, LSIPs have the potential to form a vital element of identifying skills gaps in local communities. We know this is the direction of travel, indeed, the education secretary recently described LSIPs as one of her top three ‘gamechangers’ for the sector. Independent training providers are known for their responsiveness in meeting business demand and engaging with employers of all sizes on their skills needs. If LSIPs are to be a success, training providers must have a seat at the table.
Investing in ‘left-behind’ areas is more important than ever, and the cost-of living crisis only adds more urgency to act. Levelling up cannot just be a slogan. System change of this level requires long-term commitment and investment – something ministers are understandably nervous about, given the fiscal outlook. But when it comes to skills, the risk of not investing is much more dangerous. AELP’s message is clear – levelling up must be a long-term government priority, with skills at the heart of its mission.
Key Points:
• The rationale for levelling up has not gone away – inequalities are rising.
• For levelling up to succeed, we must see long-term skills investment.
• Skills devolution brings risks, but we must recognise the direction of travel and grasp opportunities.
This article originally appeared in The Leaders Council’s special report on ‘The Levelling Up agenda’, published on November 30, 2022. Read the full special report here.
Photo by Emil Kalibradov on Unsplash
