Memorandum submitted by the London Borough
of Newham
1. The transitional arrangements currently
in place between the LSC and the Skills Funding Agency (including
any legacy issues surrounding funding problems experienced by
the LSC in respect of its management of the capital programme);
1.1 The over-commitment on capital spending
in the Building Colleges for the Future programme and the resultant
funding shortage experienced by LSC has had less of an impact
in Newham compared to other areas.
1.2 None of our colleges or local providers
have had projects directly impacted by the over-commitment. However,
the uncertainty that has resulted from the issues around capital
funding has indirectly affected local providers.
1.3 Strategic planning has been very difficult
given the uncertainty resulting from the over-commitment and now
the impending public spending freeze resulting from the financial
crisis. Although the Government announced an extra £300 million
for the college building programme in the last budget, it falls
far short of covering the overcommitment in expenditure and it
remains unclear how much resources there will be available to
supprt college building in the future.
1.4 Insititutions are facing considerable
change in funding arrangements against the background of a very
uncertain atmosphere. It is very important that they are given
certainty around capital funding provision in the coming years
so that they can plan their commitments accordingly.
2. How the SFA will oversee the FE budget
through its relationships with the UK Commission for Employment
and Skills, the National Employer Services and the National Apprenticeship
Service; and
2.1 In Newham, both employment and skills
levels are well below the national average. 34.4% of workign age
residents are economically inactive compared to 21.1% nationally
and over one in five have no qualifications whereas the
national average is just 12.4%.[30]
Tackling worklessness and improving the skills of all are major
priorities for us.
2.2 As the main host borough for the Olympic
and Paralympic Games of 2012, we have a fantastic opportunity
to regenerate the borough and change people's lives. However,
in order to take advantage of the opportunities arising out of
the regeneration, local people must be equipped with the skills
to access the jobs available. Ensuring the Games deliver in terms
of skills and jobs will be crucial to securing a lasting social
legacy for east London.
2.3 It is important that both the FE budget
and strategic planning of post-19 further education are geared
specefically towards work. Increasing an individual'ts employability
and driving the employment rate in a local area must be the primary
goals.
2.4 Under the previous funding arrangements,
the LSC focused largely on traditional long-term qualifications
with targets for Level 1, 2 and 3 attainment. This is
partly because these qualifications are familiar and easily measurable.
2.5 However, although suitable in some sectors
and for some learners, many employers feel that these traditional
qualifications are not relevant to their industry and the jobs
available in the modern economy.
2.6 We need a system which is more specifically
focused on employment and more relevant and responsive to the
skills demands of employers. This might include an expanded offer
of shorter, more work focused vocational courses, directly related
to the needs of the local job market.
2.7 To do this, it is essential to engage
employers more fully in the design and delivery of courses, so
that they truly reflect their needs. This will require working
closely with the UK Commission for Employment and Sector Skills
Councils. Cutting unncecesary bureaucracy and clearly articulating
the benefits to employers of being involved will be key to engageing
employers.
2.8 However as the UKCED and the Sector
Skills Councils are national in focus and they will be articulating
the skills needs of the country as a whole. It is therefore important
for the SFA to work closely with both RDAs and Local Authorities
to provide a more detailed picture of the skills needs in the
regional economy.
2.9 Although the National Apprentice Service
is organised on a national level, it is vital that it has a local
focus. In order to meet the needs of learners and to attract local
employers, the work of the NAS needs to be specefically tailored
to the demands of the local economy across the country. Again,
cooperation with Local Authorities is vital so that the NAS can
bendfit from their understanding of local areas and adapt its
work accordingly.
2.10 We very much welcome the recognition
of the importance of information, advice and guidance (IAG) and
the creation of the Adult Advice and Careers Service. For too
long, post-19 education has been insufficiently focused on
the end goal of employment. The increased provision of IAG, particularly
if linked closely to Jobcentre Plus, will help adults make informed
decisions about their learning and career options. This is particularly
important as we move towards a demand-led system in FE.
3. The delivery role that is envisaged for
Local Authorities and the RDAs.
3.1 It is claimed that the SFA will take
the lead in both ensuring skills needs are assessed locally and
bringing partners together to meet these local needs. However,
in the partnership with RDAs and Local Authorities, it is important
that the SFA recognises the unique role of the latter in understanding
the local area and contributing to the planning of post-19 learning.
3.2 Local Authorities are uniquely placed
to understand the complexities of their local communities as well
as the skills needs within the local labour market.
3.3 These factors can vary greatly across
one region particularly in London where wealthy, highly skilled
industries and populations exist in close proximity to and within
the same regional boundaries as deprived communities with low
skills and high levels of unemployment. Increasing regional funding
and planning risks divorcing it from the needs of local people
and the local labour market.
3.4 Following the Machinery of Government
changes, Local Authorities will assume responsability for the
commissioning of 16-19 learning within their area. In order
to offer a coherent and seemless service, it is important that
this provision dovetails with the offer for post-19 learning
3.5 Furthermore, Local Authorities are directly
elected and accountable for their actions which confers on them
the legitimacy to participate in the strategic planning of post-19 learning.
3.6 All this means that Local Authorities
need to play a central role alongside the Skills Funding Agency
in the strategic planning of post-19 learning in their area.
11 January 2010
30 Nomis, Official Labour Market Statistics, ONS Back
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