Industrial Strategy puts skills in the spotlight
techUK sets out a summary of the Industrial Strategy published on Monday 23 June. Click here for our analysis of the Digital and Technologies sector plan.
The Industrial Strategy is a ten-year plan in which government sets out its agenda for tackling some of the UK’s biggest challenges. This includes its plan to enhance skills and accelerate access to talent. Government has identified eight critical sectors (IS-8) to invest in: Advanced Manufacturing, Clean Energy Industries, Creative Industries, Defence, Digital and Technologies, Financial Services, Life Sciences, and Professional and Business Services—from this a Digital and Technologies Sector Plan has also been published.
The UK faces a dual challenge: a growing need for upskilling and reskilling alongside a decreasing pipeline of workers, teachers, and talent entering the tech sector. Skills England’s report shows around one third of average annual UK productivity growth between 2001 and 2019 is attributable to an expansion of skills available in the workforce. However, investment in skills development, both from employers but also from government, has declined over the past 10 years. The adult skills budget in England has been cut by £1 billion (20%) since 2010 – equal to a 32% cut in per head investment – and the average number of days of workplace training received each year has fallen by 19% per employee in England since 2011.
To address these challenges, the government’s Industrial Strategy has outlined how it will seek to ensure that the skills system and employment support are aligned to strategic economic priorities, including the needs of the IS-8 and transformative opportunities like AI. £1.2 billion of additional investment in skills per year by 2028-29 will be provided, alongside further support from measures outlined in the Immigration White Paper.
techUK understands the problem: we need to invest in skills to get the economy going, but to invest in skills we need to get the economy going.
We are proud that much of techUK’s positioning has been reflected in skills section of the Industrial Strategy. We look forward to working with government in the delivery of this agenda as it’s clear that the success of the Industrial Strategy depends on businesses having access to people with the right skills.
What does the government’s 2025 Industrial Strategy tells us about its approach to skills and education policy?
Authors
Jake Wall
Jake has been the Policy Manager for Skills and Future of Work since May 2022, supporting techUK's work to empower the UK to skill, attract and retain the brightest global talent, and prepare for the digital transformations of the future workplace.
Nimmi Patel
Nimmi Patel is the Head of Skills, Talent and Diversity at techUK. She works on all things skills, education, and future of work policy, focusing on upskilling and retraining. Nimmi is also an Advisory Board member of Digital Futures at Work Research Centre (digit). The Centre research aims to increase understanding of how digital technologies are changing work and the implications for employers, workers, job seekers and governments.