Industrial strategy too narrow to power growth across the UK, says the CIPD

Responding to the publication of the government’s Industrial Strategy today, Ben Willmott, head of public policy at the CIPD, the professional body for HR and people development, said: .

“We welcome the ambition to support growth in key high-potential sectors. However concentrating investment on these sectors alone will not be enough to boost productivity and living standards across the UK, a broader skills and workforce strategy is needed.  

“The eight sectors are disproportionately located in London and the south-east and represent less than a quarter of overall employment and under three in ten private sector jobs. Even if the plan results in productivity improvements and an increase in the number of high skilled and high paid jobs in these sectors, it won’t be enough to drive inclusive growth across the economy. It’s essential that the government also supports investment in the ‘everyday’ sectors, such as retail and hospitality, that employ millions of workers too.  

“We welcome the focus on developing workforce strategies for sectors within this group facing skills shortages, strengthening employer engagement, and boosting the demand for skills. These sectors stand to gain from more flexible training provision through the new Growth and Skills Levy, as well the first wave of modular learning available under the Lifelong Learning Loan Entitlement. However, this two-tier approach risks limiting the impact of both the skills agenda and the wider industrial strategy, and there’s a danger that too many individuals, employers, and parts of the economy will be left behind. We need a skills system that works for everyone — not just a few priority industries. 

“As part of this  the government should go beyond the proposed youth guarantee and offer an apprenticeship guarantee for all 16-24 year-olds. This would meaningfully improve opportunities for more young people and help develop the skills employers need to drive growth.  

“It’s also important the proposed business growth service for SMEs provides advice and support on people management, skills and employment relations issues which many small businesses lack understanding of and struggle to grow as a result.”