College funding cuts will deepen skills shortfall, warn businesses ahead of Westminster march

'The government risks squandering the potential of millions of people'

Businesses warn of skills shortfall as thousands set to march on Parliament to protest post-16 funding cuts.

The UK risks being left behind if the Government does not address the skills gap through education, business leaders from 500 small to medium-sized enterprises (SMEs) have warned.

More than half (51 per cent) of SMEs are experiencing difficulty finding employees with the right skills compared to five years ago, according to research by the Association of Colleges (AOC).

Nearly three in five (58 per cent) say finding skilled candidates is their biggest concern and the country risks being “left behind” post-Brexit if action is not taken.

These businesses say it is colleges (48 per cent) who are best placed to skill the future workforce, compared to universities (30 per cent) and schools (21 per cent).

However, a supporting study reveals that four in five fear college principals fear that cuts to college funding may limit their ability to fill skills gaps.

The survey, of 70 college principals in England, also reveals that almost all of them (95 per cent) are concerned about the effects cuts are having on their college.

The average college in England has had to cut 15 courses due to lack of funding - and teaching hours have been cut by nine hours per week in the past five years, the study found.

The data has been released ahead of a national lobby of Parliament on Wednesday where college staff and students will meet MPs to discuss funding cuts.

A protest outside Parliament by unions is expected to be attended by more than 3,000 staff and students from across the country to call for better funding for the sector.

New City College in east London is set to close on Wednesday so that the college’s staff and up to 25,000 students can join in the march organised by education unions.

Last month, the Institute for Fiscal Studies (IFS) revealed that funding per student in sixth forms has fallen by more than a fifth (21 per cent) per student since 2010-11.

And funding per student for 16 to 18-year-olds in further education has fallen by 8 per cent in real terms since 2010-11 – and it is now at around the same level as during the late 2000s.

David Hughes, chief executive at the AoC, said: "Businesses are finding it more and more difficult to recruit people with the right skills. That risks serious damage to our businesses, our global competitiveness, and our economy.”

He added: "This is not about simply asking the Government to spend more money; it is about investing for a return which will benefit all of us. A decade of cuts to college funding in our austerity decade has gone too far and must be reversed if we want to make a success of Brexit."

Andrew Harden, head of further education at the University and College Union (UCU), said: "Skills are absolutely crucial to the UK's economic success but right now our further education sector is fighting for its life.

"Colleges specialise in helping those who are often hardest for schools and universities to reach.

"They are remarkable places which transform lives and, given the chance, could help transform our country too. However, without urgent investment in our colleges and their staff, the government risks squandering the potential of millions of people."

Senior Conservative MP has warned the Chancellor this week that a "funding dip" for students between the ages of 16 and 18 must be addressed.

Robert Halfon, chair of the Education Select Committee, has written to the Philip Hammond saying the government should “look very carefully” at further education (FE) funding.

It comes after thousands of headteachers marched on Westminster to call for more funding for schools and colleges.

And last week, children directly told MPs that funding cuts are leaving vulnerable pupils at risk.

Apprenticeships and skills minister Anne Milton said: “Our schools and colleges have a vital role to play in making sure people of all ages have the skills they need to get on in life and I would like to thank them for their hard work.

“I am very aware of the funding pressures in further education which is why we are conducting an assessment of education, funding and the sustainability of the sector.

“This government plans to invest nearly £7bn this academic year to make sure there is a place in education or training, including apprenticeships, for every 16 to 19-year-old and we have protected the base rate of funding for 16-19 year olds until 2020. We are also investing in the sector as we introduce our new gold standard T Levels from 2020, which will be backed by an additional £500m every year once they are fully rolled out.”