Small firms set to benefit from skills cash injection

Small business are set to benefit from a large government cash injection aimed at helping solve the chronic lack of skills in UK workplaces.

Skills for Business, the UK-wide network of Sector Skills Councils (SSCs), has been handed £46 million in extra funding by the government to combat skills shortages across the country.

The new investment will double each SSC’s budget to £6 million.

The SSC branches, which the government promises will increase from nine to 23 by next spring, aim to tackle skills gaps in UK businesses by funding training programmes and encouraging workplace learning.

The government claimed that the skills network, which was introduced last year, will provide an employer-led solution to the skills gap and will boost productivity among UK firms.

As reported by Startups.co.uk, British businesses have suffered in recent years due to a severe shortage of skilled workers.

It is estimated that a quarter of all UK companies employ staff who cannot carry out their duties satisfactorily due to a lack of relevant education and training.

The government has launched several schemes designed to tackle the problem over the past year, including a task force to help identify skills shortages and an extension of the Modern Apprentice programmes, which give young workers hands-on training in a business.

In this year’s budget, chancellor Gordon Brown announced that another scheme, the Employer Training Pilots, will be extended across the country following a successful trial period in several English regions.

Margaret Salmon, chair of the Sector Skills Development Agency, said that the schemes were about fundamentally changing the way skills are demanded, delivered and developed throughout the UK.

“For a long time, employers have complained that their workforces don’t have the skills they need to really deliver their business objectives.

“Now, through the Skills for Business network, employers can work together with others in their sector to really make a difference to the education and training system to ensure they have the skills their organisation needs to succeed,” she said.

Ivan Lewis, the government’s skills minister, said that Sector Skills Councils are at the heart of delivering the vision outlined the Skills Strategy White Paper this summer.

“I am very pleased that we have been able to demonstrate our commitment to the employer voice in the demand for skills by making additional resources available to the Skills for Business network,” he said.