Recommendation 44

HM Government Acknowledged

115. We recognise that local areas have a role to play in mapping, commissioning and delivering adult skills and lifelong learning. We have taken the approach to do this in respect of MCAs/GLA by devolving the AEB. The Department recognises that as mayoral areas build their Local Industrial Strategies and begin to evidence local skills needs through their Skills Advisory Panels, devolving the AEB enables them to directly support adults in developing the skills that local employers need, reducing skills shortages, boosting productivity and economic prosperity and improving wellbeing in communities. 116. Government has devolved approximately half the AEB to 7 MCAs (Tees Valley, Liverpool City Region, West Midlands, Greater Manchester, Cambridgeshire and Peterborough, West of England and North of Tyne) and delegated to the Mayor of London (working where appropriate through the GLA) The authorities are now responsible for the provision of adult education and the allocation of the AEB in their local areas. In addition, Sheffield City Region and West Yorkshire are due to take on adult education functions from the 2021/22 academic year. We will continue to work with these regions to support their preparations for devolution. 117. We are committed to open dialogue with MCAs, GLA and other sector stakeholders on how best skills provision and reforms can be shaped to fit the needs of local areas. 118. We agree that technical skills provision is supporting the economy and must be responsive to local labour market needs, and that is why we will be piloting new employer- led Local Skills Improvement Plans. These plans will be created by employers and providers and will provide a framework to help colleges and other providers reshape what they offer to tackle skills mismatches and ensure that they are responding as effectively as possible to labour market skills needs. The plans will ensure a better match between the supply and demand for skills training, and being locally driven, can be tailored to the challenges and opportunities most relevant to the country’s rural areas, towns and cities. We want to start piloting these Local Skills Improvement Plans across the country as soon as possible and so in early 2021 we will announce a group of Trailblazer local areas where we will invite accredited Chambers of Commerce and other business representative organisations to work closely with local providers to co-create the first Local Skills Improvement Plans. 119. As part of the Skills for Jobs White Paper, we outline our ambitions for a simplified and better targeted funding system. See paragraph 37 for more information on this. 120. In addition, Government will set up a new Strategic Development Fund to facilitate changes to provision that have been endorsed by local employers. The Fund will offer capital and revenue funding to help colleges respond to locally agreed priorities. Further information will be announced shortly.