Prosperity for All in the Global Economy -- World Class Skills Final Report

This is one of a series of reviews, commissioned by the Chancellor of the Exchequer, accompanying the pre-Budget report 2006 (to be published 6 December 2006, Cm. 6984, ISBN 0101698429). This report considers the long-term skills needs of the UK economy to maximise economic growth and productivity and to promote social justice and social inclusion. It finds that although the UKs skills base has improved significantly over the last decade, it remains weak by international standards, and even if current targets to improve skills are met, we will still lag behind that of many comparator countries by 2020. The report concludes that a radical step-change is required across the skills spectrum to address these challenges, and it identifies a number of key principles which must underpin delivery of this raised ambition, including shared responsibility between government, employers and individuals; a focus on economically valuable skills which are demand-led; the flexibility to adapt and respond to future market needs; and maintaining continuity where possible by building on existing structures. Recommendations include: raising adults skills across all levels, including basic levels of literacy and numeracy and shifting the balance of intermediate skills from level 2 to level 3; the creation of a new Commission for Employment and Skills to better articulate employers views on skills; routing all public funding for adult vocational skills in England, apart from community learning, through Train to Gain and Learner Accounts by 2010; and launching a new Pledge for employers to voluntarily commit to train all eligible employees up to level 2 in the workplace. The report estimates a possible net benefit of at least £80 billion over 30 years could be achieved if these objectives are met, arising from increased productivity and employment growth rates.