Kevin Rowan

Mar 27 2006 By Kevin Rowan, The Journal

Last week's Budget performance was one of the lower key moments in recent economic history, diminished in its significance by a period of relatively low economic growth and the impending Comprehensive Spending Review scheduled for next year.

But there was a clear focus on key priorities, which should be especially welcome in this region.

Published alongside was a report reiterating the link between skills and productivity, Productivity in the UK 6: Progress and New Evidence.

The report highlights that while the UK performs well in high-level skills and made progress on low skills, challenges remain - including addressing the high proportion of people with only basic level skills.

There has been progress on many Government targets, but there is a long way to go. Around 27% of the workforce don't have a level two qualification (equivalent to five good GCSEs) and low skills are more prevalent among those without work

Another challenge is the number of unskilled young people in the labour market. The interim report of the Leitch Review, published along- side the 2005 Pre-Budget Report, says targets to upskill the nation won't be enough to secure long-term economic prosperity and social justice. A step change is required to ensure the UK maximises skills.

The Government's approach is rightly focused on addressing market failure and building an education and training system that provides opportunities for everyone to reach their potential, especially those who would benefit from a highly improved `vocational offer'.

The TUC supports Government's approach on skills, including the continued recognition and support for the role unions play in boosting workplace learning and skills.

Increased support for learners in enabling those up to 25 to receive free funding to study up to level three, is welcome, as are measures to help low-skilled women into work.

Pilots aimed at helping and funding women with low skills are helpful strategies to increase the opportunity for higher skills, higher pay and sustainable employment.

Prioritising skills needs of those outside the labour market by clearly building the link between skills and employment is also welcome. This will focus on empowering the jobless to acquire qualifications enabling them to find sustainable employment and career progression over the longer-term.

Clearly Mr Brown has been listening to the region.