How Labour councils are boosting apprenticeships

Labour authorities have responded to Ed Miliband’s call last year to enhance and advance the vocational route for young people.

Labour has a proud record on apprenticeships - we championed them throughout our time in office, establishing National Apprenticeship Week and boosting the number of starts, which quadrupled over the period.

Last year in his speech to party conference, Ed Miliband put apprenticeships centre stage in his vision of supporting the forgotten 50 per cent of young people who don’t go to university. That’s why we have set up our One Nation Skills Taskforce, comprised of leading representatives from business, education and trade unions, who have been looking at how best to take this agenda forward.

Apprenticeships are front and centre of our agenda for office and we’ve put forward plans to use the money which government already spends through procurement to create more apprenticeship opportunities. This builds on the approach we brought forward in government where major public sector contracts such as Building Schools for the Future and the Kickstart housing scheme all created significant numbers of new apprenticeship places. We even brought our plans to a vote in Parliament urging ministers to adopt this proactive approach but the Tory-led government voted them down.

We recognise that local government is key to delivering the step change we need. That’s why I, together with shadow planning minister Roberta Blackman-Woods, worked closely with The Smith Institute on a recent report which brings together best practice examples from 17 Labour local authorities leading the way on apprenticeships. 

All the councils featured are pushing forward this agenda in bold and innovative ways. For example, my own local authority in Blackpool have put apprenticeships at the heart of their youth employment programme. The council has been working closely with Blackpool and the Fylde College to reach out to local businesses and explain the range of incentives and support on offer if they take on apprentices.

A number of authorities are using their procurement spend to create new apprenticeship places. Manchester City Council is actively encouraging businesses within its supply chain to take on young apprentices with 66 young people being taken on as apprentices working on the Town Hall extension. Sandwell Council is using section 106 planning agreements in major public contracts to create new apprenticeships, with a target of 198 places over the next three years. Both Sheffield and Leeds City Councils have put obligations of offer apprenticeships for firms winning procurement contracts worth over £100,000.

Working closely with businesses is key to create new opportunities. Camden Council has been using the King’s Cross Construction Centre, which it set up in 2004, to work closely with large contractors to ensure apprenticeships are created on the major King’s Cross Central development – 58 young people started apprenticeships there between January and March this year.

Encouraging smaller firms to take on apprentices is key to improving the number of places available - Wakefield Council worked with 64 local small firms to create 197 apprenticeship placements, while Kirklees Council has dedicated significant resources into giving businesses a clear and easy to access apprenticeship offer.

Labour local authorities are also taking on new apprentices directly themselves. Newcastle City Council has over a hundred working across a wide range of disciplines. Plymouth City Council have doubled the number of apprentices at the council to 70 over the last year. Lewisham Council have taken on 74 apprentices this year and have developed structured career paths for them all.

The case studies detailed above are just a small sample of the submissions that have come in from the seventeen Labour local authorities we heard from. This report is an excellent showcase of the action which Labour authorities are already taking to address Ed Miliband’s call last year to enhance and advance the vocational route for young people.

The report also shows very real success that can be achieved working across the board at local level with councils engaging with colleges, LEPs, businesses and existing union learning initiatives - this is precisely the approach Labour would adopt in government.

Gordon Marsden is shadow minister for further education, skills and regional growth and MP for Blackpool South

A delegate waves a flag at the Labour Party Conference at Manchester Central on October 1, 2012. Photograph: Getty Images.

Gordon Marsden is shadow minister for further education, skills and regional growth and MP for Blackpool South

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Leader: The unresolved Eurozone crisis

The continent that once aspired to be a rival superpower to the US is now a byword for decline, and ethnic nationalism and right-wing populism are thriving.

The eurozone crisis was never resolved. It was merely conveniently forgotten. The vote for Brexit, the terrible war in Syria and Donald Trump’s election as US president all distracted from the single currency’s woes. Yet its contradictions endure, a permanent threat to continental European stability and the future cohesion of the European Union.

The resignation of the Italian prime minister Matteo Renzi, following defeat in a constitutional referendum on 4 December, was the moment at which some believed that Europe would be overwhelmed. Among the champions of the No campaign were the anti-euro Five Star Movement (which has led in some recent opinion polls) and the separatist Lega Nord. Opponents of the EU, such as Nigel Farage, hailed the result as a rejection of the single currency.

An Italian exit, if not unthinkable, is far from inevitable, however. The No campaign comprised not only Eurosceptics but pro-Europeans such as the former prime minister Mario Monti and members of Mr Renzi’s liberal-centrist Democratic Party. Few voters treated the referendum as a judgement on the monetary union.

To achieve withdrawal from the euro, the populist Five Star Movement would need first to form a government (no easy task under Italy’s complex multiparty system), then amend the constitution to allow a public vote on Italy’s membership of the currency. Opinion polls continue to show a majority opposed to the return of the lira.

But Europe faces far more immediate dangers. Italy’s fragile banking system has been imperilled by the referendum result and the accompanying fall in investor confidence. In the absence of state aid, the Banca Monte dei Paschi di Siena, the world’s oldest bank, could soon face ruin. Italy’s national debt stands at 132 per cent of GDP, severely limiting its firepower, and its financial sector has amassed $360bn of bad loans. The risk is of a new financial crisis that spreads across the eurozone.

EU leaders’ record to date does not encourage optimism. Seven years after the Greek crisis began, the German government is continuing to advocate the failed path of austerity. On 4 December, Germany’s finance minister, Wolfgang Schäuble, declared that Greece must choose between unpopular “structural reforms” (a euphemism for austerity) or withdrawal from the euro. He insisted that debt relief “would not help” the immiserated country.

Yet the argument that austerity is unsustainable is now heard far beyond the Syriza government. The International Monetary Fund is among those that have demanded “unconditional” debt relief. Under the current bailout terms, Greece’s interest payments on its debt (roughly €330bn) will continually rise, consuming 60 per cent of its budget by 2060. The IMF has rightly proposed an extended repayment period and a fixed interest rate of 1.5 per cent. Faced with German intransigence, it is refusing to provide further funding.

Ever since the European Central Bank president, Mario Draghi, declared in 2012 that he was prepared to do “whatever it takes” to preserve the single currency, EU member states have relied on monetary policy to contain the crisis. This complacent approach could unravel. From the euro’s inception, economists have warned of the dangers of a monetary union that is unmatched by fiscal and political union. The UK, partly for these reasons, wisely rejected membership, but other states have been condemned to stagnation. As Felix Martin writes on page 15, “Italy today is worse off than it was not just in 2007, but in 1997. National output per head has stagnated for 20 years – an astonishing . . . statistic.”

Germany’s refusal to support demand (having benefited from a fixed exchange rate) undermined the principles of European solidarity and shared prosperity. German unemployment has fallen to 4.1 per cent, the lowest level since 1981, but joblessness is at 23.4 per cent in Greece, 19 per cent in Spain and 11.6 per cent in Italy. The youngest have suffered most. Youth unemployment is 46.5 per cent in Greece, 42.6 per cent in Spain and 36.4 per cent in Italy. No social model should tolerate such waste.

“If the euro fails, then Europe fails,” the German chancellor, Angela Merkel, has often asserted. Yet it does not follow that Europe will succeed if the euro survives. The continent that once aspired to be a rival superpower to the US is now a byword for decline, and ethnic nationalism and right-wing populism are thriving. In these circumstances, the surprise has been not voters’ intemperance, but their patience.

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump