17 November 2011

Introduction

A week away from the launch of the next instalment of its Growth Plan and on the back of yet another round of disappointing economic figures, the Government is doing what it can to help create the conditions for growth. As indicated below, there’s been a flurry of announcements over the last few days

The context

The Growth Review was formally launched a year ago by George Osborne and Vince Cable. Intended to be a long-term project, the aim was to look across Government let alone the economy as a whole and identify ways of removing barriers and stimulating growth within of course a difficult economic climate. The first phase saw the release of a Growth Plan alongside this year’s Budget. This set out four “overarching ambitions” around which economic growth would be built; one was creating a more competitive and skilled workforce. Continuing economic difficulties make this and the other ambitions which cover the tax system, the nature of the economy and the business marketplace, increasingly important. The next stage of the Growth Plan will see an emphasis, amongst other things, on data, infrastructure and skills

So what’s been announced?

In all there have been seven major announcements:

• A further round of money from the Regional Growth Fund (RGF). Totalling £950, the aim is that along with the additional private investment that goes with it, this will support over 200,000 jobs in a number of key industries
• A series of measures to help SMEs and expected to create 4000+ jobs. This includes committed investment through the RGF from the banks and private sector, more cutting of red tape, help with exporting and a review to consider alternative sources of financing
• Additional money and support to help extend the business mentor scheme which should see the number of volunteer mentors grow to just over 25,000
• An expansion of the scheme that helps ex-service personnel who want to set up their own business, including now many of who have been injured
• Proposals to trial a compulsory community work scheme for those who have been out of work for more than two years
• A range of new measures to help beef up and expand growing apprenticeship provision with incentive payments to encourage small businesses to take on young apprentices, announcements shortly on higher level apprenticeships, a requirement on English and maths level 2 for all requisite providers, a simpler vacancy operating system and a review of quality
• A number of emerging measures being brought together under a new FE strategy and intended to free up the sector to help it respond flexibly to both local and national skill priorities

When is the next stage of the Growth Plan due to be announced?

At present it is set for release on November 29

© Steve Besley, Head of Policy, The Pearson Centre for Policy and Learning 2011.