This year’s Labour Party Conference placed skills firmly on the national agenda, with the Prime Minister setting out a new target designed to widen access to training and create more opportunities for people across the country. One of the Prime Minister’s key announcements was the scrapping of old targets for 50 per cent of young adults to enter into higher education, and the creation of a new target of two-thirds of young adults to get high-level skills, either through university, further education (FE), or a “gold standard” apprenticeship by age 25. This updated target will be supported by an additional £800 million of investment into funding for 16-to-19-year-olds next year (2026-27). This is estimated to support an additional 20,000 students to enter the FE system.

These announcements reflect a shared recognition that a stronger skills system is critical to economic growth, productivity and social mobility. For the St Martin’s Group, this renewed emphasis is welcome, but it also highlights the need for deeper collaboration with employers and providers to ensure that ambitions translate into tangible outcomes.

As part of the Conference, the St Martin’s Group hosted a fringe event within the Skills Hub, bringing together Jenny Taylor MBE (IBM), Philip Le Feuvre (NCFE), Gareth John (First Intuition) and Councillor Marion Atkinson (Liverpool City Region Combined Authority and Leader of Sefton Council). The discussion provided a timely opportunity to explore the findings of our recent research with Ipsos, Skills For All: Ten Key Employer Insights, which draws directly on employer perspectives.

During the panel, members emphasised that investment in skills training is most likely to increase when three conditions are met: confidence in the pipeline of business; flexibility to adapt programmes to sector and local needs; and incentives that make participation possible, particularly for smaller organisations. Liverpool’s approach to skills was also spotlighted as an example of how local leadership, employer partnerships and targeted investment can combine to deliver results.

Throughout Labour Party Conference, there was broad support for closer alignment between employment and skills policy, and the potential this creates to strengthen employer engagement. At the same time, important questions were raised about how to balance the creation of new entry-level opportunities with the need to support in-work progression and upskilling. These are challenges that will require sustained attention if the Government’s new target is to be met. Our research makes clear that embedding employer voice at every stage of policy design and delivery is essential; without this, programmes risk being difficult to navigate, less effective in practice and less attractive to the businesses that need to invest in them. The recent shift of skills policy from the Department for Education into the Department for Work and Pensions appears to have been positively received. This has transferred responsibility for apprenticeships, adult further education, skills and training and careers and will align skills more closely with employment, welfare and economic growth.

The Prime Minister’s announcement represents an important signal of intent, but success will depend on collaboration between government, employers, training providers and local authorities. Creating the right environment for businesses to invest in skills will be key to ensuring that ambitions become reality. The St Martin’s Group will continue to provide evidence and insight to support this process, working to help shape a system that delivers meaningful opportunities for learners, supports productivity for employers and contributes to inclusive growth across the economy.