Skills and Post-16 Education Bill [HL]

Debate between Earl of Kinnoull and Lord Bilimoria

2nd reading
Tuesday 15th June 2021 Lords Chamber

[Lord Bilimoria (CB) [V]]

My Lords, the Skills and Post-16 Education Bill represents an opportunity to create a more agile and jobs-focused skills system that is underpinned by local collaboration between further education, higher education and business. Strengthening collaboration with business can help us to identify and respond to skills demands through providing short courses that support employment and provide a talent pipeline for job creation.

For local skills improvement plans to be successful, they must leverage the input and strengths of businesses, along with further and higher education providers. Partnerships between colleges and universities can build clear pathways for people to learn new skills and support employers to recruit and upskill their workforce across the different stages of education and training. Local strategies should complement the work of LEPs and combined authorities in skills planning and harmonise the efforts of regional actors. A fragmented approach across different geographies risks confusing employers and leaving gaps in coverage.

The Government must go faster to support adult learning, ahead of the introduction of the lifelong loan entitlement. The CBI, of which I am president, in its Learning for Life report found that, by 2030, nine in 10 people will need to upskill or retrain in order to prevent skills gaps emerging in the UK. Covid-19 has thrown this challenge into even sharper focus, with an urgent need to respond to increasing unemployment. The introduction of a lifelong loan entitlement is a positive step to enable more adults to acquire the skills they need to flourish. However, the 2025 timeline needs to be accelerated in order to support the reskilling that our economy demands. In the interim, the Government should work with further education and higher education providers to incentivise and upskill through more flexible, modular and bite-sized courses.

To build on the Bill and deliver on the priority of boosting adult education, the national skills fund must also provide support for individuals facing the biggest barriers to learning, thus supporting those with the greatest retraining needs. This will be essential to mitigate the job displacement being caused by the pandemic and will help the UK to seize the benefits of an increasingly digital and green economy. We need a levelling-up of opportunity for people to build their skills, but that will require significant business investment. Realising the Government’s ambitions for this Bill will require fundamental levy reform. Addressing skills gaps in our economy and giving everyone access to the education and training they need will cost approximately £130 billion over the next decade. That is what the CBI has estimated. The Government must create the right incentives to unlock business investment in every town, city and region.

In its current form, the apprenticeship levy serves as a barrier to investment in skills. It is distorting investment as firms try to make training fit awkwardly into an apprenticeship. Many firms are also reticent about investing in further skills support until they have spent their full levy fund. A flexible skills and training levy could unleash business investment in both people and workplaces, and could capitalise on the increase in employer demand for the more modular, skills-based provision that the Government are proud of. Does the Minister agree with that?

The Government have also taken steps to make it easier for employers to transfer funds to SMEs in their supply chains. While levy payers are keen to help smaller firms invest in apprentices, that does not overcome the wider challenges, including those faced by SMEs. The fundamental issue is that employers are being forced to address all their training needs via the apprenticeship route, leading to most levy payers underspending their pot of funds. We have reached an impasse with the Government, with the Department for Education pointing the finger at Her Majesty’s Treasury. Will the noble Baroness the Minister clarify the situation?

The Open University has said clearly that the Bill is a key opportunity to reverse the calamitous decline in part-time students in higher education in England. I hope that the Minister will agree that it is essential that this is not missed. I was proud to be the youngest university chancellor in the country at the time, from 2005 to 2010 at the Thames Valley University, now the University of West London. I saw at first hand the amazing number of mature and part-time learners, but that has sadly declined hugely now.

Professor John Holford, who was a fellow commissioner on the Centenary Commission on Adult Education that reported in November 2019, has made some really important points. He says that a Bill which focuses on skills and productivity is important, but post-16 education is also vital for many other reasons too. For example, it can help individuals and communities who are struggling to counteract loneliness and isolation in the wake of Covid. We need to recognise the wider educational role of the further education sector.

Schools and universities celebrate learning for vocational qualifications, but they also teach philosophy, ethics, art and music, which are the tools needed for active citizens. Further education alone is denied that breadth. Educational breadth is needed so that adult education can engage with those who are most in need. Education has often not worked for them in the past. They do not see education as a route to earning more. Adult education needs to be able to offer the kind of learning that will enthuse and engage people. Does the Minister agree? Very often, this will build their confidence so that they can go on to study further for a qualification to progress towards better work, improved health and well-being, along with other outcomes that benefit themselves and their communities.

This Bill offers no new support for students studying below level 3. That pathway is vital to the post-16 educational landscape. Without adequate support in the adult education budget for lower-level qualifications, many students will not be ready and able to take up the level 3 offers that are included in the Bill. Does the Minister agree with this?

The preparation of local skills improvement plans must involve wide consultation not just with employers but with professionals, including community adult education providers such as the institutes for adult learning, general further education colleges and local authority community adult learning representatives.

In conclusion, I am proud to be chancellor of the University of Birmingham. Earlier on, my fellow chancellor, the noble Lord, Lord Willetts, made such an important point in this debate. Far too often, people have a mindset that further education equals technical and vocational, while university education equals academic. Universities are also proud to offer vocational training and qualifications, whether that be in filmmaking or engineering.

[The Deputy Speaker (The Earl of Kinnoull) (CB)]

The noble Lord, Lord Flight, has withdrawn, so I call the noble Baroness, Lady Whitaker.

Environment Bill

Debate between Earl of Kinnoull and Lord Bilimoria

2nd reading
Monday 7th June 2021 Lords Chamber

[Lord Bilimoria (CB) [V]]

My Lords, an independent review of the economics of biodiversity, produced by Professor Sir Partha Dasgupta of the University of Cambridge—I declare my interests—describes nature as “our most precious asset” and finds that humanity has collectively mismanaged its global portfolio. Our demands far exceed nature’s capacity to supply the goods and services that we all rely on, and the last few decades have taken a devastating ecological toll. The review highlights that recent estimates suggest that we would need 1.6 earths to maintain humanity’s current way of life. As Professor Dasgupta said:

“Truly sustainable economic growth and development means recognising that our long-term prosperity relies on rebalancing our demand of nature's goods and services with its capacity to supply them.”


Since 1970, there has been an almost 70% drop, on average, in the populations of mammals, birds, fish, reptiles and amphibians. Some 1 million animal and plant species—almost a quarter of the global total—are believed to be threatened with extinction.

The CBI, of which I am president, has been addressing resources and waste reforms. In the wake of Covid-19, the new UK-EU relationship, rapid technological advancement and climate change, the country has a defining opportunity to set an ambitious target and course for the next decade and beyond. Protecting the environment for future generations should be at the heart of any economic vision for the UK. We have just launched our economic strategy—Seize the Moment: An Economic Strategy for the UK—for the next decade until 2030; climate change, biodiversity and the environment are key pillars of this.

Just as the CBI and our members stand with the Government on meeting the UK’s target for net-zero carbon emissions by 2050, we are supportive of the ambition behind the resources and waste strategy to move towards a circular economy. The drive towards a circular economy, where resources are used efficiently and waste kept to a minimum, presents a genuine opportunity for the UK to be a world leader in sustainability. This could bring huge economic benefits, increasing our lagging productivity and improving prosperity for all. Responsible businesses know that they have a crucial part to play in protecting our environment and are acutely aware of the high consumer demand for firms to be proactive. We look forward to business continuing to work with the Government to ensure that we establish a pathway to a circular economy that enhances business competitiveness and empowers consumers to make positive choices. Does the Minister agree with this?

Some of the key points are that businesses need more visibility over how the reforms will work in practice. Taken together, the Government’s reforms are the most comprehensive overhaul of England’s waste and recycling system in a generation. Reforms on this scale are inherently disruptive, so it is crucial to ensure that their implementation, both logically and practically, take the pressures facing business into account. Many CBI members feel that the pace of reforms and lack of clarity of their design, so close to implementation, mean that many could struggle to make the necessary changes in time. Do the Government agree with that?

There are additional costs and burdens on business that need to be kept to a minimum. Consumers must be encouraged and empowered to make positive choices. The BBPA, which is a member of the CBI and of which my business is a member, says that it is crucial that the implementation of a deposit return scheme does not further hinder pubs, brewers and producers, but provides them with a platform to play an important role in supporting our environment, while continuing to operate efficiently and profitably.

The B7, which I was privileged to chair last month, feeds into the G7. There are important milestones to deliver successful outcomes and build momentum ahead of the B20, the G20 and COP 26. As we address the challenge of reducing carbon emissions, business also needs to consider wider impacts on the environment, particularly biodiversity, where more work needs to be done to understand how business and government can work together to create a sustainable future for all. G7 nations should prioritise national policies to support the development of markets that value diversity, biodiversity, natural environments, natural carbon sinks and nature-positive business activity. Biodiversity loss is occurring worldwide, and the decline is set to continue under business-as-usual patterns of activity. The World Economic Forum estimates that over half of global GDP is threatened by nature loss. Therefore, preserving nature is central to a sustainable future.

The G7 Energy and Climate Ministers issued a joint communique on G7 climate and biodiversity, and it is encouraging that they have taken the B7 recommendations on board. The OECD speaks about natural capital underpinning all economic activity. Greener UK says that the stakes could not be higher for this first dedicated environmental Bill in over 20 years. The World Wildlife Fund welcomes the Environment Bill and calls for a statutory deforestation target. Are the Government considering this? The UK NGO Forest Coalition says that halting the global loss of forests and other natural ecosystems is essential.

I conclude with Sir David Attenborough, the famed Cambridge alumnus, who welcomed the Dasgupta review, saying that it is

“the compass that we urgently need.”

He said:

“Economics is a discipline that shapes decisions of the utmost consequence, and so matters to us all. The Dasgupta Review at last puts biodiversity at its core … This comprehensive and immensely important report shows us how by bringing economics and ecology face to face, we can help to save the natural world and in doing so save ourselves.”

[The Deputy Speaker (The Earl of Kinnoull) (CB)]

I call the noble Lord, Lord Sheikh.