‘Give us the cash to tackle skills shortage’

City council chiefs hope to persuade ministers to devolve powers so they can respond better to the needs of businesses in the region.

John Mothersole, chief executive, revealed the plan to business leaders at a chamber of commerce meeting on Friday after they raised concerns about the state of the training system and its negative impact on the city’s £9bn economy.

Ken Torres, managing director at Torres Pumps, told the meeting that manufacturers “are not able to deliver on exports” because of a serious shortage of skilled workers.

Mr Mothersole said that the council wants to create an employer-led system where businesses have a bigger say in the type of skills training in the area.

He told the Yorkshire Post: “We have an economy that demands good skills.”

At present, the Government funds skills training at a national level via the Skills Funding Agency, which contracts work to local providers such as colleges.

Critics say that the framework system encourages colleges to concentrate on courses that are cheaper to run, regardless of whether they are useful to industry.

One leading industrialist said: “We don’t need more hairdressers in Sheffield city region – we need engineers and high-value skills for the sectors we are majoring on.”

The council is applying to win the controls via the Government’s new core cities agenda, which promises to grant greater freedoms to eight UK cities to help kickstart economic growth.

A spokesman for the council said: “It’s not about control for control’s sake. It’s about wanting a more responsive system. What’s right for Sheffield might not be right for Milton Keynes.

“We want a much stronger relationship with employers on one hand and with training providers on the other.

“Our role should be to stitch that together so providers are able to deliver what our employers are telling us that they need.”

Mr Mothersole used the analogy of running a business. He said: “If you are running a company, you are in charge of recruitment, training and marketing.

“If you scale that up to running the economy of a city region, it’s a bit strange that you can’t be in charge of your skills investment.”

Andy Tuscher, regional director of the Engineering Employers’ Federation, told the Yorkshire Post that the skills issue is near the top of the agenda for members “with regard to hindering growth”.

He said: “Having more control on funding has to be positive for the region with the caveat that it is not just for existing providers.

“It has to be business focused to deliver what business needs as opposed to what colleges and other providers think they need.

“We have got some good further education colleges but they deliver what they want to deliver, often what is not required.

“Some providers can prove the demand is there because people fill the courses but it is not always what industry needs.”

He said that the issue could become more pressing as major new businesses enter the region, drawing staff from the existing skills base.

James Newman, chairman of the Sheffield city region’s local enterprise partnership, is backing the bid.

He said that the Government has been treating all the regions with the same one-size-fits-all approach, regardless of individual requirements.

Mr Newman said: “We are saying we can take control of our own specific needs.”

The businessman added: “If most of education is around the areas where we have good jobs then students will find more places for engineering, design and IT rather than other courses which perhaps they have taken because they have been available.

“It’s trying to push our youngsters into education that ultimately will mean there is a job for them in this region.”

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