MAKE UK Industrial Strategy Skills Commission Report 2025 – Reforms Vital for Our Economic Future

On 1st April, FEL / FC CEO and ATMF Chair, Jenny Holloway, was invited to the Make UK Industrial Strategy Skills Commission (ISSC) event to mark the publication of the Commission’s final report. This includes recommendations for Government on how the new Skills and Growth levy can best ensure meaningful reform to address industry needs.

The report brings together some of the most qualified experts in education, training and industry to diagnose the wide scale problems in the skills system. Manufacturers continue to struggle with over 61,000 unfilled vacancies, while apprenticeship starts have fallen 42% since the introduction of the Apprenticeship Levy. The challenge now is how to reverse this trend and ensure we have the skills for the future of the industry.

The UK is currently grappling with an economic and productivity crisis. Since the beginning of the 21st century, the UK economy has struggled to meet its potential, and in the past decade, it has faced difficulty regaining momentum lost since the financial crisis. Key industries are experiencing slow growth, stagnant wages, and a widening productivity gap.

The most valuable asset in any economy is its people. To address the UK’s economic and productivity challenges, industries need a highly skilled workforce, well-versed and practiced in the latest technologies. However, the UK manufacturing sector currently faces a shortage of 55,000 skilled workers, resulting in an annual loss of £6bn in output. The proposals in this latest report aim to close this skills gap.

A strong Industrial Strategy is at the heart of the new government’s growth plan, yet several obstacles must be overcome to ensure the UK’s industrial and economic success. A major challenge is the “perfect storm” impacting the manufacturing workforce: early retirements, an ageing workforce, and rising occupational ill-health have severely affected the sector. Additionally, apprenticeship starts have plummeted by 42% since the introduction of the Apprenticeship Levy seven-years ago.

This has led to an increased demand for skilled workers just as the pipeline of qualified candidates, teachers, and talent continues to shrink. The skills shortage is now a pressing issue for many companies, threatening not only their growth but also their ability to maintain daily operations and meet customer contracts.

Additionally, technological advancements are reshaping both the economy and society. Yet British industry is falling behind its international competitors. While the Prime Minister has committed to making the UK a global leader in Artificial Intelligence, the country, despite having the world’s sixth-largest economy, ranks 24th in industrial robot density. This gap is partly due to the shortage of a skilled workforce capable of adopting and implementing these advanced technologies.

History has shown us that in times of technological revolution, empowering individuals to reskill and upskill is crucial for success in the evolving economy. As new technologies begin to reshape businesses and the nature of work, it’s vital that our education and skills system adapts to meet future industrial needs.

Speaking frankly about the topics raised Jenny Holloway said: “I’m glad I answered Richard Partington’s, Economic Correspondent at the Guardian, question when he said – ‘What are employers doing about it?’ (The skills shortage)

“Well, let me tell you Richard! When Brexit became an issue we at Fashion-Enter Ltd and www.fashioncapital.co.uk, invested heavily in opening a Fashion Technology Academy. £100,000s were invested in a state-of-the-art academy and I retrained to be a Level 5 teacher, assessor, IQA, I helped to write new qualifications that were fit for the industry, with John West, Director of Skills at UKFT. 

“We became a quality apprenticeship provider and currently deliver the Level 4 Product Technologist standard for retailers such as Next. We have built an incredible academy that is followed by 67,000 bright, young, future artisans on TT.

“Then guess what! A new principal starts at a college group that we have worked with for near on 25-years and puts a red line through our name.  Absolutely shocking! What’s also shocking is that the Minister for Education Jacqui Smith has been repeatedly contacted and never responds! 

“Employers do stand up to the challenge of training and then there’s zero support from Government! I’m sincerely hoping Make UK will support all independent training providers in line with suppliers.

“With regards to quality training resulting in industry skills I would like to positively highlight Leicester City Council, and their support on the Skills Bootcamp programme, that trains individuals in the skills employers need.

“Make UK – let’s work together to make the right policy changes that will the engage the 250,000 plus SMEs in the manufacturing sector, and not just concentrate on the 800 large manufacturing companies.” 

The Make UK Industrial Strategy Skills Commission Report 2025 is available to download and read via the Make UK website here.

Images from the Make UK Industrial Strategy Skills Commission Report 2025