The CII welcomed the emphasis on employer led competition in the provision of education and skills to UK workers, saying that for far too long employers have been ignored by education providers.
Responding on behalf of the CII, its deputy president Lord Hunt said: “Lord Leitch’s report marks a watershed in UK plc’s attitudes towards its workforce’s skills and knowledge. Once, training and development was seen as something that was desirable; this report has shown the country it is an absolute necessity if the UK is to maintain its position in the global market.
“As globalisation continues to change the face of the UK’s economy, our financial services industry is playing an increasingly significant role in the prosperity of our nation and its reputation around the world. But, with only one in eight employees in the UK’s insurance sector holding some form of insurance qualification, this could have a serious impact on inward investment and support for the UK insurance market as companies look to follow the trail of talent overseas.
“The UK is a global centre of financial expertise built on hundreds’ of years of experience in specialist markets such as insurance and banking. But our role is not guaranteed – nothing is sacred in the modern business world. With the first major wave of outsourcing, we’ve already seen how jobs can be moved offshore and specialist knowledge be exported to new and developing markets with increasing ease.
“If we fail to upgrade our skills, we are condemning ourselves to a long and lingering decline. But if we grasp the nettle and make a genuine and enduring commitment to developing our people, we can ensure that our financial services industries shine like a beacon across the global economy. We’ve seen what can happen in sectors like manufacturing when other economies begin to flex their muscles; we can’t allow that to happen in financial services in the same way.”
The CII supported the proposed reforms and will engage with them. The Institute is keen to investigate ways to increase the incentives for financial services employers to invest in training via the expansion of “Train to gain”.
The Leitch report highlights that low skill levels can hold back productivity and growth and warns that even if current targets are met, by 2020 the UK’s skills base will be inferior to that of many other developed nations.
