Make UK’s Industrial Strategy Skills Commission Proposes Sweeping Reforms

03 April, 2025

Co-Chair of Make UK’s Industrial Strategy Skills Commission, Robert Halfon, emphasised the critical need for reform: “Modern manufacturing and engineering are major drivers of the innovation needed to capitalise on the AI revolution and deliver on the Government’s growth agenda across new green skills technologies and opportunities. Yet all of this is at risk if we do not urgently ensure our skills system is properly fit for the 21st Century.

“It is critical that we remove the barriers for Britain’s innovative companies from offering skills and apprenticeships, so that the new Growth and Skills Levy provides enough quality apprenticeship opportunities that lead to progression and good employment outcomes. That is why financial incentives through a skills tax rebate, cutting bureaucracy and ring-fenced skills funding will make a huge difference. The Skills Covenant will put skills and apprenticeships first and foremost in the minds of government and business.”

Make UK CEO Stephen Phipson CBE added: “The Apprenticeship Levy in its current form has been nothing short of a disaster. Apprenticeship starts in manufacturing have fallen by 42%, meaning tens of thousands of learners have gone without invaluable training in the last eight years.

“Government is sitting on a pot of cash that should immediately be ring-fenced and spent on skills training. The first priority is properly funding courses so colleges and training providers aren’t put off delivering higher-cost courses such as engineering. There also need to be targeted efforts to recruit experienced tutors to train up the next generation in the skills we need now and in the future.”

The message from the Commission is clear: without immediate and decisive action, Britain’s ability to compete on the global stage will be severely compromised. By adopting the Skills Covenant and ensuring that funding is directed where it is most needed, the UK can begin to reverse the downward trend in vocational training and secure the workforce necessary to drive future industrial success.

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