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

Getty Images.
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The Brexit effect: The fall in EU migration spells trouble for the UK

The 84,000 fall in net migration to 248,000 will harm an economy that is dependent on immigration.

The UK may not have left the EU yet but Europeans are already leaving it. New figures from the ONS show that 117,000 EU citizens emigrated in 2016 (up 31,000 from 2015) - the highest level for six years. The exodus was most marked among eastern Europeans, with a fall in immigration from the EU8 countries to 48,000 (down 25,000) and a rise in emigration to 43,000 (up 16,000).

As a result, net migration has fallen to 248,000 (down 84,000), the lowest level since 2014. That's still nearly more than double the Conservatives' target of "tens of thousands a year" (reaffirmed in their election manifesto) but the trend is unmistakable. The number of international students, who Theresa May has refused to exclude from the target (despite cabinet pleas), fell by 32,000 to 136,000. And all this before the government has imposed new controls on free movement.

The causes of the UK's unattractiveness are not hard to discern. The pound’s depreciation (which makes British wages less competitive), the spectre of Brexit (May has refused to guarantee EU citizens the right to remain) and a rise in hate crimes and xenophobia are likely to be the main deterrents. Ministers may publicly welcome the figures but many privately acknowledge that they come at a price. The OBR recently forecast that lower migration would cost £6bn a year by 2020-21. As well as reflecting weaker growth, reduced immigration is likely to reinforce it. Migrants pay far more in tax than they claim in benefits, with a net contribution of £7bn a year. An OBR study found that with zero net migration, public sector debt would rise to 145 per cent of GDP by 2062-63, while with high net migration it would fall to 73 per cent.

Brexit has in fact forced ministers to increasingly acknowledge an uncomfortable truth: Britain needs immigrants. Those who boasted during the referendum of their desire to reduce the number of newcomers have been forced to qualify their remarks. Brexit secretary David Davis, for instance, recently conceded that immigration woud not invariably fall after the UK leaves the EU. "I cannot imagine that the policy will be anything other than that which is in the national interest, which means that from time to time we’ll need more, from time to time we’ll need less migrants."

Though Davis insisted that the government would eventually meet its "tens of thousands" target (a level not seen since 1997), he added: "The simple truth is that we have to manage this problem. You’ve got industry dependent on migrants. You’ve got social welfare, the national health service. You have to make sure they continue to work."

As my colleague Julia Rampen has charted, Davis's colleagues have inserted similar caveats. Andrea Leadsom, the Environment Secretary, who warned during the referendum that EU immigration could “overwhelm” Britain, has told farmers that she recognises “how important seasonal labour from the EU is to the everyday running of your businesses”. Others, such as the Health Secretary, Jeremy Hunt, the Business Secretary, Greg Clark, and the Communities Secretary, Sajid Javid, have issued similar guarantees to employers. Brexit is fuelling immigration nimbyism: “Fewer migrants, please, but not in my sector.”

Alongside the new immigration figures, GDP growth in the first quarter of 2017 was revised down to 0.2 per cent - the weakest performance since Q4 2012. In recent history, there has only been one reliable means of reducing net migration: a recession. Newcomers from the EU halved after the 2008 crash. Should the UK suffer the downturn that historic trends predict, it will need immigrants more than ever. Both the government and voters may only miss migrants when they're gone.

George Eaton is political editor of the New Statesman.

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