Source · Select Committees · Public Accounts Committee
Recommendation 19
19
Accepted
Construction industry may lack skills and workforce for government's infrastructure strategy
Recommendation
There is a general recognition that sectors, including the construction industry, may lack the appropriate skills and workforce to deliver on the government’s infrastructure strategy. NISTA told us that, in collaboration with the Department for Business and Trade and the Department for Education, it has a role in supplying the information needed to determine the skills requirement. This will in turn link to the pipeline and the 10-year infrastructure strategy that organisations such as Skills England will use to identify what the long-term requirements for skills in the UK are over 10, 15 or 20 years to ensure that infrastructure projects can be delivered.43 39 Committee of Public Accounts, Delivering value from government investment in major projects, Thirty-Second Report of Session 2023–24, HC 456, May 2024; Committee of Public Accounts, HS2: Update following the Northern leg cancellation, Tenth Report of Session 2024–25, HC 357, February 2025 40 Qq 10-12 41 C&AG’s Report, para 2.17 42 C&AG’s Report, para 2.21 43 Q 68 14
Government Response Summary
The government agrees to address infrastructure skills gaps, with a target date of October 2026, by continuing to partner with industry, providing training, leveraging Skills England, and expanding existing initiatives to build and retain necessary private finance expertise.
Government Response
Accepted
HM Government
Accepted
4.1 The government agrees with the Committee’s recommendation. Target implementation date: October 2026 4.2 The government recognises that a step-change in infrastructure investment will require specialist private finance capacity and capability, as well as other specialist workforce skills. Government has engaged widely with industry during the development of the 10 Year Infrastructure Strategy, and will continue to work in partnership with the private sector and a wide range of stakeholders to unlock capital and build confidence in the UK. 4.3 The government is already building capability across government by providing training for some aspects of private finance. NISTA holds network events for private finance experts across central and local government to facilitate networking, encourage the sharing of expertise, and improve learning. NISTA also provides training for PFI contract managers on several topics including contract expiry and will be publishing PFI contract and performance management guidance later in 2025 to help authorities improve the management and performance of their contracts. Finally, the Treasury, NISTA and UK Government Investments lead on the government's corporate and project finance professions which support learning and development, postmortem analysis and professional skills. 4.4 In the 10 Year Infrastructure Strategy, the government committed to understand the UK’s infrastructure skills requirements – to better identify where it needs to provide support. Skills England will collate a national picture of skills gaps by working closely with mayoral strategic authorities, while bodies such as the Office for Clean Energy Jobs will build a clear picture in individual sectors. The Infrastructure Pipeline data will also provide insight on the scale and range of construction skills required, which will support Skills England in understanding and addressing critical skills gaps. The government will expand the scope of these existing initiatives to capture how the public sector can build, attract and retain the necessary private finance skillset and workforce to deliver greater infrastructure investment.