South West business leaders are calling on the government to provide more help with upskilling the region’s workforce and to commit “vital funding” to support firms during the current economic downturn.
The Heart of the South West Local Enterprise Partnership (LEP) said a regional skills gap in tech-driven sectors, such as data science, cyber and robotics, meant innovative companies in the area were “struggling” to fill roles, slowing down growth.
The LEP has proposed reform to the current “restrictive” apprenticeship levy system, which it said currently prevents businesses from funding courses which are shorter than a year.
The group’s chair Karl Tucker said: “Demand for key emerging sectors such as tech and digital is outweighing the number of skilled workers, together with a significant shortfall in available skilled labour in other sectors including agriculture, construction, healthcare, education and engineering.
“It is therefore absolutely crucial that we work with Government to increase the upskilling of our workforce, support more people into the labour market, and ensure people’s skills are resilient to the future of industry.”
Toby Parkins, chair of Tech South West, the region’s tech cluster, added: “Modern growth businesses rely on technology to create greater growth, and they all have a desperate need to find more skilled people. It’s essential that Government prioritise an innovative skills training agenda.
“By doing this they will increase the earning capability of individuals, and then increase the productivity of businesses across all sectors. This approach will provide the fastest way to increasing taxation income, and create the greatest return on investment to the Treasury.”
It comes as The Heart of the South West LEP, which supports firms in Devon, Somerset, Plymouth and Torbay, called for a further extension of public funding for its growth hub.
The LEP said it was “pleased” that Government has confirmed funding through to next year for the hub, which has provided more than 600 businesses with free advice on grants, cost of living, Brexit and finance. The group called for this to be extended to 2025, and avoid the current “annual ‘hand-to-mouth’ funding model.”
Mr Tucker said: “As our businesses struggle with rising costs of doing business and recruitment challenges, it’s more important than ever that they are supported to help them to weather the current economic storm. We are urging Government to confirm their support for the South West business community, to help our businesses to flourish now and in the future.”
Stuart Elford, chief executive of Devon and Plymouth Chamber, added: “Business support has never been so critical as businesses struggle to cope in a post-Brexit, post-Pandemic world that has left them with few reserves, spiralling costs and a lack of people. They also need help to achieve their net zero ambitions against this difficult backdrop and in a region with poor connectivity and physical infrastructure.
“It is vitally important that businesses can access information, advice and support, as well as signposting through one organisation. The Devon & Plymouth Chamber completely supports the Heart of the South West Growth Hub, and asks Government to continue funding this vital service so that it may help businesses survive and thrive.”
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