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Productivity plan is crucial but how will it be implemented? 02 February 2016

The Government’s Productivity Plan lacks clear, measurable objectives and largely amounts to an assortment of existing policies. 

These are the findings of the Business, Innovation and Skills (BIS) Committee following its inquiry into the plan.

Whilst the Committee supports the thinking behind the plan it calls on the Government to set out how it is going to implement the Productivity Plan and measure the success of each of the policies included in the plan.  These include the measurement of policies to improve the basic skills of the workforce and to enhance the employability skills of pupils/students as part of improved careers advice.

The BIS Committee inquiry, chaired by Iain Wright MP (Labour), focused on the main areas in the Plan relating to skills including:

Apprenticeships:

  • The BIS Committee welcomes the desire to close the skills gap and encourage vocational training by setting an ambitious target of three million apprenticeship starts by 2020. However, it notes the Government’s apparent lack of consultation with industry on this policy and raises concern that this decision has been made with no consideration for what type of training businesses actually require. The Committee calls on the Government to set out the rationale and evidence base for its three million target.
  • The Committee recommends the Government consults with industry to ensure the apprenticeship levy allows sectors to invest in skills through different qualifications and training methods specific to their needs.
  • It also recommends that the Government works with businesses and individual sectors to produce targets for higher-level apprenticeships to help fill the skills gap.

Further and Higher Education

  • The Committee recommends that the Government does more to balance the perception of the benefits of college and vocational education against those of higher education.  This would promote both Higher and Further Education as attractive career paths and good drivers of productivity.
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