12 Dec 2006 - Govt commissioned review to identify the optimal skills mix for 2020 in order that we can maximise economic growth, raise productivity and improve social justice.

The Government commissioned the Leitch Review to identify the UK's optimal skills mix for 2020 in order that the UK can maximise economic growth, raise productivity and improve social justice.

The final report, published on 5 December 2006, recommends far-reaching changes to the UK's education and training system to make it responsive to employer needs, and to ensure the UK remains globally competitive.

If implemented the Leitch recommendations are likely to have a significant impact upon the skills architecture including colleges, universities and training providers. In the Pre-Budget Report the Chancellor committed the Government to how best to achieve the Leitch ambitions and implement its recommendations as part of next Comprehensive Spending Review.

Policy drivers

• Globalisation pressures

Despite a stable macro economy, rising growth rates and the highest employment rate amongst the G7 countries, the UK's skill levels remain fundamentally weak by international standards. Increasing globalisation and rising competition dictate the economies will be driven by increasing skills levels, and China and India are turning out 4 million graduates a year, the UK's figure is just 250,000.

• Lagging productivity

Another key policy driver for the Leitch Review is the fact the productivity of UK workers lags behind our major competitors. Leitch estimates that one fifth or more of the UK's productivity gap with countries such as France and Germany results from the UK's relatively poor skills. An increased focus on skills will raise productivity.

Targeting world leader status

In the face of this challenge, Leitch recommends that the UK commits to becoming a world leader in skills by 2020. Achieving this means doubling attainment at most levels within the Education system, and in many cases achieving far better than that. Its principal targets are:

• 95% of working age adults to achieve functional literacy and numeracy - up from 85% literacy and 80% numeracy today.
• More than 90% of workforce adults to be qualified to at least Level 2 where feasible - up from 70% today.
• Shifting the balance of intermediate skills from Level 2 to Level 3 and improving the esteem, quantity and quality of intermediate skills - This means 1.9 million additional level 3 attainments and boosting the level of apprentices to 500,000 per year.
• More than 40% of the adult population qualified to Level 4 - up from 29% in 2005.

Principles of the Leitch Review

The following five principles underpin the delivery of the Leitch Review;

• Shared responsibility - Employers, individuals and the Government must work together to increase skills engagement and investment;
• Increase action and investment - Employers and individuals should contribute to training and Government investment must focus on ensuring a basic platform of skills for everyone;
• Focus on economically valuable skills - Skill developments must provide real returns for individuals, employers and society. Wherever possible, skills should be portable to deliver mobility in the labour market for individuals and employers;
• Demand-led skills - The skills system must meet the needs of individuals and employers. Vocational skills must be demand-led rather than centrally planned;
• Adapt and respond - As nobody can accurately predict future demand for particular skill types, and adapt and respond to future market needs; and
• Build on existing structures - Instead of abolishing current structures improve their performance through simplification and rationalisation.

Leitch recommendations

Overall Leitch encompasses eight recommendations to improve skills policy. These are;

• Increasing adult skills across all levels - This can be achieved by increased investment by individuals, business and the Government;
• Route all public funding for adult vocational skills in England (apart from community learning) through Train to Gain and Learner Accounts by 2010;
• Strengthen employer voice - Rationalise existing bodies, strengthen the collective
  voice and better articulate employer views on skills by creating a new Commission for Employment and Skills. The Government have appointed former Director-General of the CBI, Sir Digby Jones as a new skills envoy;
• Increase employer engagement and investment in skills - Reform, relicense and empower Sector Skills Councils (SSC) and allow public funding for vocational qualifications where the content has been approved by SSCs.
• Launch a new ‘Pledge' for employers - This will voluntarily commit to train all eligible employees up to Level 2 in the workplace.
• Increase employer investment in Level 3 and 4 qualifications in the workplace - Extend "Train to Gain" to higher levels, dramatically increase Apprenticeships and improve engagement between employers and universities;
• Increase people's aspirations and awareness of the value of skills;
• Create a new integrated employment and skills service to increase sustainable employment and progression.

Conclusion

The Leitch Report places skills at the heart of Government policy over the coming years, and strongly echo's the approach of Sir John Egan in his review "Skills for Sustainable Communities". Egan concluded that to deliver sustainable communities required skilled and committed individuals working together, speaking a common language and working towards a common goal. Leitch continues the pressure on all sustainable community professions to consider updating their professional skills.

One of Leitch's five principals is that employees should be able to adapt and respond to the changing economy. One way for built environment professionals to achieve this objective would be to focus on generic skills such as visioning, project management and leadership. Adaptability and flexibility will be integral to building and maintaining sustainable communities. 

» Download the Leitch Review