Chartered Management Institute warns that skills miss out in latest departmental reorganisation

The latest changes to the machinery of Government risk undermining the skills agenda, warns Petra Wilton, Director of Policy and Research at the Chartered Management Institute.

“The creation of this new super ministry, with 10 ministers reporting into Lord Mandelson, has the potential to significantly weaken the political significance of the skills agenda.

“Although there will be four Ministers covering the skills portfolio, either wholly or in part, there will be no direct voice in Cabinet. At a time when universities and FE colleges are facing new funding challenges, there is concern that investment in skills and education will be eclipsed by the focus on business and the need to drive the economic recovery.

“DIUS had a lifespan of less then two years, with administration costs alone in the region of £9m. Given the current state of public finances, it is disturbing that such costs are to be incurred again in the creation of another new department, especially at a time when universities and colleges have been told to find £400m in savings as part of the government’s efficiency drive.

“The critical challenge of up-skilling and raising management and leadership skills could be in danger of missing out. Management and leadership skills are particularly important owing to their multiplier effect in relation to other skills, and they must be improved for the UK to be globally competitive over the next decade. Only by investing in improving skills will companies survive the downturn and emerge ready to compete when the global economy improves.”

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