The Local Government Association (LGA), which represents more than 370 councils in England and Wales, has called on the government to devolve funding of construction training – currently managed via the Skills Funding Agency and CITB – to local areas.
In its report entitled ‘Skills to build’ the LGA says that skills funding must be devolved to the local partnerships or “hubs” of councils, colleges and employers to help battle the growing skills gap.
According to the report, changes are needed to reverse the decline in numbers of people completing construction apprenticeships that have steadily fallen from 18,850 in 2008/09 to 7,930 in 2013/14.
The LGA argues that councils are well placed to connect construction clients and developers with the education and skills system, matching supply and demand and helping to resolve the widening skills gap.
Under its proposals, local government would play a greater role in how apprenticeships are administered and funded with the transfer of post 16 and adult skills budgets to “local areas”.
Construction, planning and built environment apprenticeship achievements (England)
The CIOB has welcomed the LGA’s Skills to Build report, saying: "We fully concur that local authorities are best placed to understand the needs of their local economy and therefore need to be able to influence skills training and employment support in their area.
"In the No More Lost Generations report launched last year, one of the stand-out recommendations was for local employment partnerships, with significant input from local authorities, to take a lead in setting up Employment and Skills Groups, to agree targets, manage initiaitves, and monitor outputs for local jobs for young people.
"These ESGs should be formed of a core of key stakeholders – contractors, client representatives, local authorities, education establishments, JobCentre Plus and local training providers.
‘We also agree with the LGA’s view that local authorities should work with developers to create appropriate training and employment opportunities via the planning process. We have seen that such a startegy works best where there is buy-in from the very top of councils."
A key recommendation of the LGA’s report is to establish local apprenticeship hubs funded using Apprenticeship Grant for Employers (AGE) funds to create opportunities for young people, and for the retraining of unemployed adults.
The AGE grant offers employers who have less than 50 staff £1,500 per apprentice for up to five trainees. In some parts of the country, namely Greater Manchester, Sheffield and West Yorkshire, AGE is already managed locally with varying eligibility criteria.
The report also recommends that councils be empowered to work with private sector developers and public sector clients to identify skills gaps and “ensure publicly funded local skills and training providers train unemployed residents to take jobs created” at new developments.
A further recommendation would see responsibility and funding for providing careers advice return to councils in partnership with schools, colleges, job centres and local industry.
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Peter Box, Labour councillor and chair of the LGA’s housing board, said: “For too long we’ve trained too many hairdressers and not enough bricklayers. Too few apprentices are getting the construction skills to build the homes and roads our local communities need and developers are struggling to recruit skilled labour to build new homes.
“Industry is clear that skills gaps are one of their greatest barriers to building. If we are to see the homes desperately needed across the country built and jobs and apprenticeships created, councils must be given a leading role.
“Skills demand will always vary significantly across the country. For example, the north west is desperate for bricklayers while the west midlands have a higher demand for wood trades and interior fitters.
“Councils are best-placed to understand the needs of their residents and local economies but have no influence over skills training and employment support in their area.
“In return for increased funding and powers, councils, schools, colleges and employers could work together to reduce unemployment, close this widening construction skills gap and ramp up house building.”
The report comes as discussion on how apprenticeships in the construction industry are managed increases. Last month the chancellor announced an “apprenticeship levy” on all major firms in his 2015 budget speech.
