Skills and Post-16 Education Bill (Second sitting) Debate

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Department: Department for Education
Andrew Gwynne Portrait Andrew Gwynne
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My hon. Friend is right. There has to be a fair arbitration process as well, because it may well be that the chamber of commerce does not agree that it is failing, in which case we will have a problem in trying to resolve the matter. I do not want to focus on possible failure, but we have to legislate for it, just in case. I want each and every one of these bodies to be a success but if, for whatever reason, one is not, we must know what the mechanisms are to ensure that the skills strategy for a given geographical area is carried on and made successful. My hon. Friend the Member for Chesterfield’s amendment seeks to get that information from Ministers on what happens if, for whatever reason, things go wrong.

Lastly, I come back to the issue of how boundaries matter. If, for whatever reason, the boundaries for the skills strategy are different from those of whoever takes over that responsibility in the event of the chamber of commerce failing, we need to make sure that it is clear that the replacement covers the same area as what went before it.

Rachel Hopkins Portrait Rachel Hopkins (Luton South) (Lab)
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It is a pleasure to speak under your chairship, Mr Efford. I rise to support amendments 35, 45, 36 and 46, which were well presented by my hon. Friend the Member for Chesterfield. It is particularly important to reflect the points well made by my hon. Friend the Member for Denton and Reddish about public and private employers. Much has been said about the potential for formulating the employer representative body from the chamber of commerce. The clue is in the name: it is about commerce and business, as much as employers.

That leads me on to the bit in between: our strong and vibrant voluntary sector. Recently, we have seen the greater rise of commissioning over many years by many public sector organisations. They have had 10 years of cuts, to be frank, so they have thought of innovative ways to deliver what I believe to be public services still. They have commissioned the voluntary sector, and it is vital for the voluntary sector—as suggested by amendment 46 —to have a seat on that employer representative body, whether as a collective in an overarching grouping or as key individual employers in the designated area, whatever it might be. Equally, we must ensure an interrelationship with other significant public sector bodies—put well by my hon. Friend the Member for Denton and Reddish. Not being explicit is not recognising what the employment market looks like.

Emma Hardy Portrait Emma Hardy
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When the Government design the LSIP areas, I wonder whether it would be helpful to produce some data on the respective public-private employer difference in each area. Each area will look different, so I imagine that the employer representatives would be reflective of that particular labour market.

Rachel Hopkins Portrait Rachel Hopkins
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My hon. Friend makes an excellent point. Exactly that—this is an employer representative body. The Bill must be open and explicit about ensuring that the public and voluntary sectors, and others—small businesses, the self-employed—have a seat at the table, through whatever mechanism. It is for them to outline how they wish to do that, but perhaps through something like the Federation of Small Businesses. I think that is vital, because otherwise it just gets lost in the grain. If the measure is to be a success in pushing forward on the skills agenda, we need to be explicit about who is at the table, who is shaping the plans and which areas. I hope that the Minister addresses my comments in his response.

Matt Western Portrait Matt Western
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Briefly, the amendments seek to reflect the reality on the ground, as we have heard. Let us think about HS2 and what has been happening. We have had years—decades—of plans for HS2, but we have seen skills sucked out of the regions so that we cannot get normal construction projects completed. That is because there has not been the co-ordination that there should have been. How was that allowed to happen? The result has been a huge impact on our regional economies.

Amendment 35 looks at the inclusion of public and private sectors as employers on the ERB. How can we not include the national health service, for example, and yet are able to include Virgin Care or Circle and others? It is bizarre that the public sector is not included.

On linking to the public sector, amendment 46 also seeks to include other employers, such as SMEs, the self-employed—as my hon. Friend the Member for Chesterfield said—and public and third-sector employers. Right2Learn, in a written submission, stated:

“We believe it is critical that local skills and training strategies need to look far more widely at including third sector organisations, as well as HE and FE providers. There must be far more opportunities for the direct involvement of SME clusters and organisations and the so-called gig economy which the Taylor Commission highlighted, including co-operatives and self-employed.”

I have said before, we must include charity-heavy provision and I gave the example of the Workers’ Educational Association.

Amendment 46 states that we need to include the third sector and the local health boards. As I said, we have seen how good that can be through the pandemic. Local primary care networks and public health in our localities really stepped up and showed that what they do is what they know, which is their regions, their populations and their geographies, to deliver good services. The same would apply to the provision of skills across our regions.