On Wednesday, Rishi Sunak, Chancellor of the Exchequer, announced the latest October Budget, following 18 months of uncertainty due to the pandemic.
Sunak promises his Budget will deliver a “stronger economy for the British people” and leave them in “no doubt” the government’s plan is working, confirming that the government will be investing in infrastructure and skills, he states.
Ian Rawlings, RVP EMEA at SumTotal, commented that the Chancellor’s autumn budget has been widely anticipated in all circles. “In his address to the Conservative Party earlier this month, Prime Minister Boris Johnson unveiled his ‘Build Back Better’ strategy to shift the country to a “high wage, high skill, high productivity economy”. Continued action to tackle unemployment and support job seekers will be instrumental as organisations face shrinking talent pools and a surge in demand for talent driven by digital transformation.”
Earlier this week, it was announced that Sunak planned to invest close to £3 billion on a “skills revolution” spending package which will include £1.6bn to support the roll-out of T Levels, £550 million for adult skills and £830 million to revamp and modernise colleges.
Rawlings added, “As the furlough scheme ended, job creation and skills shortages were partially addressed by the announcement of more job search support for individuals and extensions of the Kickstart scheme and apprenticeship grant scheme. However, these initiatives, supported by today’s announcement on supporting growth with the “skills revolution” spending package, only touch the tip of the iceberg.
“‘The Great Resignation’ has thrust the skills crisis further into public consciousness, highlighting the need to build – and retain – skilled employees. Organisations need to push ahead with their reskilling efforts to help defend against this ongoing talent crisis, and future-proof both their employees and the wider business. Succession planning is key for identifying and developing future leaders, not just at the top but for roles at all levels. And, critically assessing the future demand for skills and understanding the patterns and obstacles that may affect workforce migration to new skill sets, will ensure HR teams can stay one step ahead as the war for talent intensifies.”
Following the announcement, Martin Taylor, deputy CEO and co-founder of Content Guru, highlighted that output from the education system needs to change faster. “Business needs more IT type people being produced,” he urged.
“We need a rapid increase in women graduating with STEM skills. Women are half of the workforce and barely exist in technology roles. Without any need for immigration we have a whole vast untapped potential skills pool.
“However, the root is at A Level choices. For various reasons, girls of school age are not being attracted to maths and science subjects. which self perpetuates. Secondary education is where the shaping happens that leads to subject choices for university degrees, which in turn industries harvest. Secondary schools are where the focus needs to be.”
“The shortage in maths and IT skills is driving up salary expectations. We have lost valued skills to inflated offers from companies backed with lots of money. Our business has sometimes suffered from being viewed as a ‘graduate finishing school’ for poachers to recruit from.”