A highly skilled workforce that delivers economic growth and regional prosperity demands a local approach
On Wednesday 30th October, the Chancellor's first Autumn Budget outlined a strategy to 'fix the foundations of the economy,' emphasising a commitment to regional prosperity.
Key investments include £300m for further education, a £2.3bn boost to core school funding and £40m to reshape the Apprenticeship Levy into a more flexible Growth and Skills Levy.
But these initiatives, while crucial, only scratch the surface.
For lasting growth, strategies must be regionally grounded, acknowledging the unique needs of different communities while cultivating a resilient, diverse workforce that supports long-term economic development.
By prioritising local training, regions can tailor skill development to their specific industry needs, equipping individuals with the perfect blend of leadership, management and technical skills that increase personal productivity and enrich the wider economy.
Targeted skills-building programmes, not only help individuals to improve their skills and employment prospects, they fuel both individual and collective prosperity.
The regional imperative
While driving’ regional prosperity’ has become the new buzzword in policy circles, the reality of delivering equitable economic growth requires hands-on, region-specific solutions.
Every region has distinct training needs for its workforce.
Take for example, Instep’s leadership training programme funded by the Greater Manchester Combined Authority (GMCA) via the UK Shared Prosperity Fund (UKSPF). Available to businesses across the region, it has been developed to address the identified critical skills gaps across some of the core primary sectors that shape much of the region's economy - from construction and manufacturing to engineering, and digital.
Added to this is the Innovate UK Launchpads programme - it has been pivotal in supporting regional clusters of innovation. With a £75m investment, these Launchpads are boosting local economies by fostering high-tech innovation in sectors such as renewable energy in South-West Wales, agri-tech in East Anglia, and digital health in Yorkshire.
In Liverpool and Teesside, pilot projects have demonstrated the potential of targeted support for small and medium-sized enterprises (SMEs), leading to significant advancements in areas like net-zero industrial emissions and eco-friendly construction materials.
Locally driven leadership support programmes that align with the local skills improvement plan, are a testament to the impact of devolved training models. They show how regional oversight can make training more relevant and effective. These initiatives highlight the importance of tailored support and collaboration with local leaders to drive economic growth and innovation.
Placing control within local hands fuels meaningful, region-specific growth, fostering pride and commitment among businesses and residents who become active architects of their community’s economic future.
For instance, companies like Warburtons have seen significant improvements in managerial confidence and team performance through tailored local training initiatives.
Productivity’s missing link: Investment in people, not just places
The discourse on regional productivity often centres around physical infrastructure. But while improving connectivity is essential, it’s not a panacea.
Keir Starmer has pointed out that flexibility in working practices is also critical to enhancing productivity. Yet without targeted training to develop leadership and management competencies, productivity gains, no matter how they’re achieved, remain limited and uneven.
At Instep our own research revealed that 92 per cent of employers observed measurable productivity improvements after employees completed locally -delivered skills courses. This data reflects a simple truth: productivity hinges not only on physical resources but on fostering a capable, adaptable workforce ready to meet future demands.
The simple fact is when leadership and management training are integrated into local economic strategies, they become powerful drivers of both individual career growth and regional economic resilience.
Local skills, long-term gains
While the UK Shared Prosperity Fund (UKSPF) fuels strategies like this, the need for continued, stable funding remains clear.
As the government sets priorities for the coming years, expanding such funding will be essential for the UK to build a workforce that is both skilled and representative of the country’s diverse population.
With the right support, regional programmes can continue to empower individuals to identify efficiencies, implement cost-saving strategies and solve logistical challenges, creating direct economic benefits for both employers and employees.
Through employer surveys and ongoing programme performance reviews, the businesses participating in fully-funded leadership training delivered by the Instep team reported significant results: one organisation identified £30,000 in cost savings, while another addressed an 18-month backlog in production thanks to the skills imparted by regional training initiatives.
These achievements underscore the transformative potential of a workforce strategy built on local strengths.
Sustaining momentum for future growth
The Autumn Budget’s commitment to UKSPF is encouraging, but to unlock the full economic potential of UK regions, ongoing investment in locally led skills programmes is crucial.
It’s not enough to make incremental adjustments; building a prosperous and inclusive economy requires a sustained commitment to workforce development that aligns with the ground-level needs of our communities.
The possibilities for regional prosperity are endless when government, local authorities and training providers collaborate to build a high-impact, locally driven workforce.
The results speak for themselves - and as the national conversation continues to focus on productivity and social mobility, this regional approach offers a scalable, effective solution for sustainable growth across the UK.
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