Budget 2011: Business leaders applaud Budget commitments to boost skills

23 March 2011

By focusing on education as one of four key routes towards economic growth, today's Budget Report has been warmly received by the business managers and leaders represented by Chartered Management Institute (CMI).

Business leaders are applauding George Osborne’s aspiration for Britain to “create a more educated workforce that is the most flexible in Europe”. His decisions to boost education and training for 11-19 year olds and double the number of University Technical Colleges with Government funding have been applauded, but questions remain over the focus on vocational training, at the expense of professional qualifications.

CMI’s reaction comes in the wake of membership research showing that 69% of employers believe failures in the education system are damaging the UK’s economic performance. Just 20% accept that the current system develops young people to a satisfactory level.

Ruth Spellman, chief executive of CMI, says: "Employers keep telling us that although management and leadership skills are universal requirements for those entering almost any type of employment, the majority of school leavers have little idea about the skills needed to run a business or work for an employer. The fact that work experience schemes are being extended to 100,000 young people and that 40,000 Apprenticeships will be delivered as a result of today's Budget is clearly a good thing, but education must be based on the needs of employers. True entrepreneurialism and genuine ‘readiness for work’ will only be created if schools and employers are able to work together to deliver qualifications that equip pupils with the tangible skills missing from today’s workplaces."

CMI's research shows that employers wanted to see a change in the way these important skills are developed. Some 82% of managers agree that giving young people the skills they need at work should be the top priority for the education system.

Spellman says: "The Chancellor concluded that his measures announced today are evidence of the government backing real training. By focusing on young people and by creating an extra 10,000 higher level Apprenticeships, it is certainly a move in the right direction. George Osborne is also right to draw attention to the gaps between UK and international skills levels.

"Certainly CMI's data showing how Britain spends less, per capita, on management and leadership development than our major competitors is an indictment on our performance and we can't let this become a pattern defining future business generations. If Britain is to become more competitive on the global stage, students will need to be exposed to the management, leadership and workplace skills that will boost career opportunities and develop the skills we know employers want to see in new recruits."

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