Embargoed until
00:01 Monday 7 March 2011
Growth and Innovation Fund will boost investment in training and
help businesses grow
Secretary of State for Business, Vince Cable, and Minister for
Skills, John Hayes, today launched a £50 million a year fund to
help businesses develop the skills they need to drive growth.
The Growth and Innovation Fund (GIF) will deliver targeted help
for employer groups to overcome barriers to growth within their
sectors and industries. The funding could deliver new training to
boost innovation and productivity, enable industries to set new
professional standards, or support new or extended National Skills Academies.
BIS will invest up to £50m per year in partnership with
businesses, whose investment alongside Government could deliver a
total of up £100m a year.
Secretary of State Vince Cable said:
“This government understands that to rebalance and grow our
economy, we need to tackle the skills shortages that hold
companies back. Through this fund, we will support employers that
take collective action to overcome these blockages to expansion.
“By putting the employer voice at the heart of the process, we
will reward inventive approaches to training that deliver real
help to get business moving.”
Minister for Further Education, Skills and Lifelong Learning,
John Hayes said:
“Government investment in skills works best for individuals
and communities when it responds directly to employers’ needs. By
giving business the power to shape the training support we offer,
we will ensure that public money directly supports jobs and
growth.
“I look forward to working with industries of all kinds to
deliver help where it is most needed to boost performance.”
The investment fund – which will be delivered in partnership
by the UK Commission for Employment and Skills (UKCES) and the
Skills Funding Agency (SFA) – invites proposals from employer
organisations such as Sector Skills Councils, professional bodies
and trade associations. The prospectus – published today –
outlines three types of project where GIF funding and employer
investment can be brought together:
‘Best Market Solutions’: which will invest in the best
innovative ideas to drive enterprise and remove skills barriers to
growth, including through the introduction of new voluntary
professional standards and voluntary training leviesNational
Skills Academies: expanding the successful network of National
Skills Academies, which already exist in 16 sectors such as
Environmental Technology, Railway Engineering and RetailJoint
Investment Programme: bringing together employer and public
investment in specific training projects which improve business
productivity and growth, or address skills gaps and shortages.
Charlie Mayfield, Chairman of the UK Commission for Employment
and Skills and Chairman of the John Lewis Partnership, said:
“This Fund is about employers taking control of their own
destinies. We are looking for ambitious, innovative and
sustainable schemes that will tangibly improve the skills base of
the sector and make a real and lasting improvement to performance.”
Geoff Russell, Chief Executive of the Skills Funding Agency said:
“This is the opportunity for employers to be pioneers, customers
and investors of skills and training. Through joint employer and
Government investment we can boost the country’s skills and
promote economic growth.”
Notes to Editors
1. The Growth and Innovation Fund was first proposed in the
Skills for Sustainable Growth strategy in November
2010. The fund will provide up to £50 million per year in 2011-12
and 2012-13, underpinned by accompanying investment by employers,
giving a potential total investment of up to £100 million per
year. We are planning a similar level of investment over the
subsequent two years of the Spending Review period.
2. £30m of the Government funding in each year supports the
investment fund launched in the GIF prospectus, of which around
£5m a year will sustain pilot Joint Investment Programmes agreed
in autumn 2010 with five Sector Skills Councils. £25m a year is
available for new projects.
3. The other £20m a year from GIF supports the SME Leadership and
Management Grant which provides grants (match-funded by employers)
to support Leadership and Management training for SMEs and social enterprises.
4. The prospectus published today details the criteria for bids
in 2011. The scope of future invitations to apply may differ from
this prospectus; for example, we are not expecting to seek
applications for National Skills Academies in future prospectuses.
5. Applications are being invited from Sector Skills Councils,
Industry Training Boards, formally constituted Sector Bodies,
National Skills Academies, Employer Associations, Trade
Associations and Professional Bodies. Bids will be assessed by a
GIF investment board, chaired by Charlie Mayfield, Chair of the UK
Commission for Employment and Skills.
6. The GIF prospectus can be found on the UKCES website at www.ukces.org.uk/gif
7. The Growth and Innovation Fund will invest in a range of
projects to raise skills levels and support growth. For examples
of how this could work in practice go to:
http://nds.coi.gov.uk/ImageLibrary/detail.aspx?MediaDetailsID=3288
8. BIS' online newsroom contains the latest press
notices, speeches, as well as video and images for download. It
also features an up to date list of BIS press office contacts. See
http://www.bis.gov.uk/newsroom
for more information.
Contacts:
BIS Press Office
NDS.BIS@coi.gsi.gov.uk
Mohammed Hussein
Phone: 020 7215 5950
mohammed.hussein@bis.gsi.gov.uk