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Santander UK has called on the government to prioritise leadership, digital, and sustainability skills in its new National Plan for Skills to address the UK’s productivity crisis and equip the workforce for the future.

Productivity in the UK is stagnating, a situation worsened by a decline in the number of workers seeking to enhance their skills. A recent report from Santander, titled Tomorrow’s Skills, highlights that the workforce is now spending 20% less time on training compared to a decade ago. Nevertheless, more than half of UK employees recognise the increasing importance of upskilling to meet the demands of future jobs.

Responsibility for professional development seems to be shared, with survey findings indicating that 48% of respondents believe the government should play an active role, while 33% think businesses should also be held accountable.

The challenge is substantial: according to the World Economic Forum’s 2023 Future of Jobs Report, by 2027, 60% of workers will require some form of training, yet currently, only half have access to adequate opportunities. As these changes take shape, the pressing question remains—are we ready? Moreover, how can organisations seize this moment to enhance their employees’ skills and address the ongoing productivity challenges?

As a City & Guilds organisation, we understand the crucial role that skills development plays in fostering growth and productivity, as well as improving living standards and opportunities. With productivity growth in the UK stagnating, the launch of the new government initiative ‘Skills England’ offers a unique opportunity to create a more equitable system that can boost both economic and individual prosperity.

In a recent report by City & Guilds, Making Skills Work: The Path to Solving the Productivity Crisis, Making Skills Work: City & Guilds Productivity Report champions skills as key to unlock UK growth produced in collaboration with the Lifelong Education Institute, we provide a thorough overview of the past 60 years of skills and education policy. The report also offers insights into how effective skills development can address the productivity challenge.

This report features research commissioned by City & Guilds, which surveyed 1,000 decision-makers in UK businesses and 2,000 working-age adults. It highlights strong links between skills and productivity, as well as marked regional disparities in opportunities:

  • A significant majority of senior decision-makers (74%) and over 90% of CEOs consider workforce skill-building essential for enhancing productivity.
  • Fewer than half of working-age adults (48%) feel they left education equipped with the right skills to pursue their chosen careers.
  • A notable minority (40%) of those not currently in work (students, unemployed, retired) lack confidence in their skills to enter the workforce.