Employment and Skills Bulletin
A regular selection of news and views from Skills and Employment Team at Hounslow.
National Policy Developments
UK businesses report boost in innovation (BIS)
More UK businesses than ever before are coming up with new ideas and products, according to officialstatisticsreleased last week. The statistics, based on a survey of almost 30,000 employers between 2012 to 2014, show over half (53 per cent) of UK businesses are actively engaging in developing and introducing new products and ways of making them, as well as new services and ways of doing business.
Sunday trading set to benefit economy to the tune of £1.5 billion (BIS)
New figures published show that extended Sunday trading hours would benefit the UK economy by an estimated £1.5 billion over 10 years. The £1.5 billion figure could be even higher, depending on the decisions made by local authorities once the powers have been devolved. The saving from being able to increase the use of existing large stores is expected to benefit consumers as a result of competitive pressure. This would be equivalent to around £29 per household, in areas that fully take advantage of extended Sunday trading hours.
This is part of a package of government measures to devolve Sunday trading laws to local authorities allowing councils to ‘zone’ any relaxation so they will be able to prioritise high streets and city centres.
Personal Independence Payment consultation response announced (DWP)
The government is changing the assessment criteria for the daily living component of Personal Independence Payment (PIP) to ensure the system is fairer with money targeted at those who need it most. As part of wider reforms to welfare, PIP was introduced to replace the outdated Disability Living Allowance. The changes follow an independent review to ensure the benefit was meeting its initial purpose – to help people with the extra cost of disability.
Business Secretary: More must be done to ensure BME workers get more job opportunities (BIS)
Businesses must do more to help BME workers access the labour market and progress their careers, Business Secretary Sajid Javid has said at the first meeting of a new cross-Whitehall Ministerial taskforce when he called on them to engage with Baroness McGregor-Smith’s review into access to the labour market. Ministers from across government met to discuss the barriers to progress and agree what more could be done to deliver the PM’s BME 2020 vision, which set out a series of targets.
Rise across the country in teenagers studying or training (DfE)
The proportion of young people in education or training rose across England last year, according tofigures published last week. Data collected by local authorities shows that at the end of 2015 91.2 per cent of 16- and 17-year-olds were in some form of education or training. This was a 1 percentage point rise on the same period in 2014. As part of its commitment to delivering educational excellence everywhere, the government is determined to ensure all young people, irrespective of their background, have the chance to fulfil their potential.
£325 million coffee factory and £50 million energy research centre bring jobs boost for Midlands (BIS)
A new coffee production facility in Derbyshire was officially opened by Business Secretary Sajid Javid last week creating a total of 425 jobs and boosting the Midlands economy. Nestlé already employs nearly 1,000 people at its Tutbury site, and its total of £325 million investment is recognition of the highly-skilled labour force, which includes manufacturing and engineering apprentices. The factory now produces 40 million cups of coffee every day, making Tutbury one of the world’s most productive coffee factories. Business Secretary Sajid Javid also officially opened the Energy Innovation Centre (EIC) atWarwick Manufacturing Group(WMG),University of Warwick.
Matt Hancock opens Civil Service Fast Track apprenticeships scheme (Cabinet Office)
The Civil Service Fast Track programmegives people the chance to earn a competitive salary while they work towards a Level 4 Apprenticeship, gaining the skills and experience that they’ll need for a successful career in the Civil Service. Apprentices will be able to apply for roles in business, commercial, digital, finance, project delivery and communications.
Boost for aspiring homeowners as planning permissions hit 8-year high (DCLG)
New figures show that the number of planning permissions for homes rose 6 per cent on a year earlier, as housing measures continue to turn the market around and build more homes for hard working families and first time buyers. The number of major applications being processed swiftly by local authorities is also at an all-time high with a record 81 per cent decided within the required time. It means the number of planning permissions granted for homes in 2015 was the highest since 2007.
Councils given flexibility to use sales of surplus property to improve services (DCLG)
Updated guidance published last week by Communities Minister Marcus Jones, shows how councils can use a radical shake-up of spending rules to make improvements to local services. In theAutumn Statement, the Chancellor announced changes to the rules for use of ‘capital receipts’. Now for a 3-year period from the 1 April, local authorities will be able to spend any revenues they generate from selling surplus assets – like property or shares and bonds – to fund the costs of improvements to things like housing and children’s services. Ministers say the new rules – which run for a 3-year period – will incentivise local authorities to sell assets that could be made surplus and to invest the proceeds and make their services more efficient.
BRDO and NMRO combine to simplify regulation for British business (BRD & NMRO)
TheBetter Regulation Delivery Office(BRDO) andNational Measurement and Regulation Office(NMRO) are being brought together into a single BIS directorate from 1 April 2016 to focus on regulation and enforcement. BRDO is currently responsible for improving the way in which local and national regulators enforce regulations, saving money for business and taxpayers. NMRO currently operates as an Executive Agency within BIS, sponsored by BRDO, aiming to simplify technical regulation for the benefit of UK businesses.
News and Views
Sunday trading changes defeated as Tory rebels reject David Cameron’s last-minute pleas (Independent)
Scottish MPs have blocked plans to let English shops open longer on Sundays despite a majority of politicians south of the border voting for the change. David Cameron suffered his most damaging Commons defeat since re-election as 27 Tory MPs ignored his last-minute pleas and rebelled. However proposals to hand councils the right to extend Sunday trading hours would have passed if the SNP abstained from changes that did not directly affect Scotland. MPs voted 317 to 286 for removing the amendment from the Enterprise Bill – a majority of 31 – in a major blow for George Osborne, the architect of the plans. Some 52 Scottish MPs voted against the changes. The Chancellor was already forced to pull the vote once last year when due to a lack of support.
Silicon Valley Bank: A lack of talent is the biggest public policy issue for UK tech startups (Business Insider UK)
UK tech startups are still struggling to find the right people to grow their businesses, according to research published by Silicon Valley Bank. The UK faces a skills crisis with the industry experiencing an annual shortfall of 40,000 graduates with backgrounds in science, technology, engineering and maths (STEM) subjects, according to a Campaign for Science and Engineering (CaSE) report onImproving Diversity STEM. Half of the survey respondents said they’re looking for sales skills, while engineering and technical skills, product development, and marketing skills are also going to be in demand in 2016 – 48 per cent said a lack of access to talent made it difficult to scale operations, while 42 per cent said it inhibited product development, and 29 per cent said it inhibited revenue growth.
Families face biggest council-tax increase in eight years (Independent)
The Chartered Institute of Public Finance and Accountancy has released figures suggesting the biggest council tax increase for eight years is imminent, with the average bill set to rise by nearly £50 in England and Wales. Following a change in the rules by George Osborne, authorities will be able to raise council tax charges by up to 3.99 per cent in 2016-17 without having to call a local referendum. Of the 320 authorities that were surveyed in England and Wales, fifty said they planned to impose the full 3.99 per cent rise, and nearly 80 said they would increase the charge by between 3.90 per cent and 3.98 per cent. Only 30 planned to freeze bills. By contrast, the charge in London boroughs will rise by just 0.6 per cent because the Greater London Authority is reducing its precept.
CBI calls for 50,000 home target (CBI)
The Confederation of British Industry (CBI) has called on the next mayor of London to commit to building 50,000 homes a year. The CBI, which represents businesses, has published its London Manifesto, listing housing as one of its seven priority areas. The CBI believes a shortage of affordable housing is leading to higher housing costs and is affecting the ability of firms to recruit and retainstaffin London. It wants the new mayor to publish a new housing strategy within 100 days of taking office, committing to 50,000 new homes a year. This would represent a doubling of current build rates, with official government figures showing 24,620 completions in 2015.
Fears councils will waste £26bn business rates handover (Telegraph)
A poll of 500 businesses has raised questions over the impact of the Chancellor’s plans to hand local authorities control of business rates, with some suggesting that allowing councils to keep £26bn of revenues to spend on services may see some spent unwisely. Almost half of those surveyed by the Institute of Chartered Accountants in England and Wales (ICAEW) said they were not confident that adequate rates would be set. Only 38 per cent said they were confident that councils’ would make the right decisions on expenditure, while 54 per cent expressed concern that the money would not be used “adequately to promote local or regional growth”.
Benefit cuts ‘will leave mothers £13bn worse off over course of current Parliament’ (Independent)
Figures produced by the House of Commons Library assess the impact of changes announced by Chancellor George Osborne on women with dependent children. The data shows that policies including cuts to universal credit, the four-year freeze on child benefit payments and reductions in housing benefit outweigh increases to the personal income tax allowance and extra money for childcare. This will see mothers left £13bn worse off over the course of the current Government.
UK workers are ‘paying £91 billion a year to work’ (Independent)
Full-time workers spend 16 per cent of their annual income on work related expenses, including childcare, commuting, clothes and computer equipment among others, new research has found. In total British workers spend £91 billion annually or £3,405 each on costs related to their job, according to a new survey by Santander. A rise of nearly 6 per cent compared to £3,218 in 2014. Santander, a financial services provider in the UK, has surveyed more than 2,000 workers to see how much they spend on all work related products. Commuting is the most expensive part of being in employment, costing a full-time employee an average of £1,087 per year, a slight drop from 2014, the study found.
Living wage ‘threat to care homes’ (BBC)
Care home providers have warned that paying their staff the National Living Wage will be the “last straw” for some home already struggling with rising costs. Campaigners have said one in four homes could face closure when the living wage is introduced in April. The government says it is making up to £3.5bn available for councils to cover the extra cost of social care.
The squeezed Millennials (Guardian)
A new investigation by the Guardian has revealed that in many countries, those born between 1980 and the mid-1990s – so-called Millennials – are earning as much as 20 per cent below their average fellow citizens while pensioners have seen incomes increase. The investigation, which used exclusive data from the LIS (Luxembourg Income Study): Cross-National Data Center, established that a series of factors including debt, rising house prices and unemployment played a role in dropping incomes for young people.
London’s future skyline forms (Telegraph)
London’s skyline is in flux, there are 436 towers – defined as those over 20 floors – proposed, in planning, approved, under construction or completed in London, according to research by New London Architecture. In the last 12 months alone, 119 skyscrapers have entered the planning system – but only 16 have been completed, suggesting that while a huge number are in the pipeline, actually building them is another matter. This article includes a map of the location of all 436 skyscrapers including the number of floors, developer, architect and name.
Councils to be cut out of £30bn funding under government plans to empower schools (Telegraph)
Under government plans for a major escalation of the drive to empower schools, more than £30bn of education funding is to be made available for headteachers rather than local authorities. The changes are part of a nationwide drive to end a “postcode lottery” that sees big regional differences between the amount of money spent on each child, according to ministers, and will affect almost every primary and secondary school in England. Under the existing system, a school in one part of the country could receive over 50 per cent more than an identical one elsewhere with the same number of children.
Publications
Women in Work (PWC)
Research from PwC shows Britain is rising up a league table measuring women in work, climbing to 16th place from 21st the year before, in a ranking of 33 countries. The change is due to a fall in female unemployment and a narrowing gender pay gap. PwC’s Women in Work report says the UK gender pay gap dropped from 20 per cent to 18 per cent in the latest index but was still higher than the average of 17 per cent for the 34 countries in the OECD. Increasing female participation in the British labour force from 68 per cent to 73 per cent could add £170bn to the UK economy and boost GDP by 9 per cent.
Building a new deal for London: Final report of the London Housing Commission (IPPR)
London faces unprecedented challenges in housing its citizens. The London Housing Commission proposes a new deal to secure essential powers and resources for the London mayor and boroughs, and a programme of immediate actions to start to redress the crisis. The London Housing Commission says the capital should be given powers over housing, including ability to determine planning fees and stamp duty, and to charge extra council tax on empty homes.