The lack of skilled workers may be holding back the development of new industries in the UK, such as electric car manufacturing and other technologies needed for moving away from a carbon-based economy to a more sustainable future.

This is the warning from business leaders and educators to the House of Commons Business and Trade Committee.

Further damaging the UK’s potential for economic growth and improving workforce skills are “a lack of awareness of career pathways and local skills needs”, a “burdensome and inflexible” Apprenticeship Levy, and too little professional recognition for skills in industries such as hospitality and retail, committee members were told during a round of national engagement meetings in December 2024, of which the findings have been published in a new report.

Published in February, ‘The Priorities of the Department of Business and Trade’ reflects what the committee members heard at sessions in Exeter, Cardiff, Oxford, Warwick University, Manchester, Glasgow and at Westminster in London from a wide variety of organisations. Michael Page and RGB Recruitment were among the employment businesses that sent representatives to attend, according to the list of attendees.

In launching the national engagement drive, “we have begun to create a shared space for the British business community, trade unions, consumer groups, academics and Parliamentarians to consider the immediate and longer-term shifts needed to deliver faster growth of the UK economy”, said committee chair Liam Byrne MP.

Industrial relations and the Employment Rights Bill will be in the “first wave” of inquiries to be held by the committee “to reflect both the government’s bill and the messages we heard about business’s number one challenge: securing the best possible workforce”, the report said. The priorities list also includes export-led growth, the promised industrial strategy, and access to finance and investment such as for scale-up businesses.

Proposals for improving the skills of both the existing workforce and the next generation of work call for:

• Economic clusters must be able to “tailor training” for local workforces, especially when large-scale projects create new opportunities.
• Curriculum reform should include skills for work and schools’ career education must be improved with “clearer pathways” to apprenticeships.
• Devolution of skills policy can help employers grow, foster innovation in recruitment, improve employment standards and support local businesses that are rooted in communities.
• The Apprenticeship Levy should be reformed to enable greater flexibility.
• A training system must be built that can continuously upskill the workforce “at the speed of industrial change”, the report said.
• Businesses would value more direct involvement with the education system “to help school leavers with the right skills for the future job market”, the report said.
• The government was urged to “formally recognise” roles in sectors such as retail and hospitality as “highly skilled”. Feedback said: “Perceptions… must be changed so that jobs in these sectors are seen as a lifelong career and not simply starting off points for the young.”
• The visa system for securing skills and talent from overseas into specific sectors will require simplification and cost reduction.

Commenting on the sessions, committee member Charlie Maynard MP described them in the report as “completely fascinating”, but added: “Some of it made hard listening.”

The government has two months to respond to the committee’s report.

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