Ellie Ames 21 July 2023

Skills shortage set to worsen with end of European fund

Skills shortage set to worsen with end of European fund  image
Image: Alexander Supertramp / Shutterstock.com.

Local authority leaders have warned that the ongoing skills shortage could get worse as the European Social Fund (ESF) finishes at the end of this year.

In a survey of its members, the Local Government Association (LGA) found increasing demand for skills in new industries such as renewables, green technology, digital and cyber.

The number of people not in employment, education or training in many areas has increased, the survey found.

The LGA said it was concerned about a gap of several months between the end of the ESF, which must be spent by the end of this year, and the investment in skills, training and jobs that will come from its domestic replacement, the UK Shared Prosperity Fund (UKSPF).

The LGA said there had been delays and short-notice changes involved with the distribution of UKSPF funds, and local authorities and their partners, including businesses, colleges and training providers, needed certainty over future allocations.

Mayor Marvin Rees, chair of the LGA’s city regions board, said employers were ‘crying out for new recruits with the right skill sets’. Mayor Rees said: ‘Local councils are best placed to connect them, working alongside the business community, unions and our vital training organisations.

‘To do this, we need long-term funding for employment and skills development in our local areas, with the UKSPF included.’

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