Skills England unveils 'roadmap' for local skills to drive growth
Source: gov.uk (2025-11-18)

Development of second round of Local Skills Improvement Plans (LSIPs) is now underway. New guidance to steer the process has been launched by Skills England.

development of second round of Local Skills Improvement Plans (LSIPs) is now underway

new guidance to steer the process has been launched by Skills England

this follows the publication of the government’s landmark Post-16 Education and Skills White Paper last month

New guidance published today will empower local leaders, employers, colleges, independent training providers, and universities to transform skills training across England – driving national economic renewal from the ground up.

Local areas know best how to tackle local skills needs. LSIPs are vital for making this a reality and Employer Representative Bodies (ERBs), working with Strategic Authorities where they are in place, will lead on development.

These local plans provide in-depth insight on skill needs across a given area - from supporting people to enter work and progress in employment, through to post graduate level 8 - and the actions required to meet them. The work will involve many key local stakeholders including Job Centre Plus.

The LSIPs statutory guidance (https://www.gov.uk/government/publications/local-skills-improvement-plans) sets out how key players for all 39 LSIP areas must work together to develop three-year plans that will be approved in summer 2026 and run up to 2029.

Minister for Skills, Baroness Jacqui Smith, said:

Local businesses and communities know best what skills they need to succeed. New Local Skills Improvement Plans will put employers, educators and authorities at the heart of identifying skills gaps and delivering the training that matters most to their area. By tailoring skills training to local needs, we will break down barriers to opportunity and help businesses and communities across England thrive.

Phil Smith, chair of Skills England, said:

Delivering meaningful change must be driven at a local level by the people who know their communities best. Local Skills Improvement Plans are central to making this a reality - uniting employers, strategic authorities, HE and FE providers and all those involved in solving local skills challenges together. This new guidance sets the roadmap for making that happen.

This second round of LSIPs presents an outstanding opportunity to shape the skills agenda in your area. I would like to encourage local organisations, who care about training-up local people and supporting businesses to succeed, to take it.

Minister Smith is meeting representatives involved in the West Midlands LSIP during a visit today (18 November 2025) to PwC’s offices, in Birmingham, to celebrate the start of the second round of LSIPs and launch of the new statutory guidance.

Reflecting the greater role for Strategic Authorities set out in the English Devolution White Paper, this guidance gives them an enhanced partnership role in LSIP development and implementation alongside designated Employer Representative Bodies.

In devolved areas, Strategic Authorities will work jointly with Employer Representative Bodies, combining employer and sector insight with local economic expertise to ensure skills provision aligns with local growth priorities. In non-devolved areas, local authorities will be closely involved.

The guidance recognises the critical role of higher and further education in the skills system. Universities will work alongside colleges and independent training providers to ensure provision meets local labour market needs and supports people at all levels - from entry into work through to postgraduate qualifications.

Further to this, it focuses on how this cannot happen in isolation. Getting local skills provision right, through successful LSIPs, is important for unlocking national economic growth and the earning potential of millions of people across the country.

LSIPs will be a key part of helping deliver the Government’s ambition for two-thirds of young people to participate in higher level learning - either academic, technical, or an apprenticeship - by age 25 – as set out in the Post-16 Education and Skills White Paper (https://www.gov.uk/government/publications/post-16-education-and-skills-white-paper)

Skills England has been set up to make sure that the skills system is more responsive to changing economic demands at a local and national level, using data and intelligence to help shape provision.

It has responsibility for the LSIP programme and will work closely with Employer Representative Bodies and Strategic Authorities to develop its analysis of national and local skills needs, via a regular two-way flow of information.

The second round of LSIPs are due to be approved and published by Summer 2026.

The new statutory guidance replaces what was previously issued in October 2022, to guide the first round of LSIPs. It has taken on board constructive feedback from local employers, strategic authorities and other key stakeholders.

Shevaun Haviland, Director General of the British Chambers of Commerce (BCC) , said:

Solving the skills crisis afflicting the UK is crucial to growing the economy faster. BCC research shows that 75% of employers are struggling to find staff with the skills they need. LSIPs are a key tool in addressing this problem. With a strong focus on employer engagement, they can match skills provision to local economic needs in the medium and long term future. In the first few months alone, over 65,500 businesses engaged with Chamber-led LSIPs, many of them getting involved in the skills system for the very first time. We are already seeing the positive, practical impact of LSIPs on the ground, and it is hugely encouraging that the government has committed to developing them further.

Richard Parker, Mayor of the West Midlands, said:

The best way to deliver positive action for local people is by making decisions locally. This principle sits right at the heart of my West Midlands Growth Plan and West Midlands Works ambitions. Employers are the lifeblood of our skills ecosystem. By strengthening relationships with them and responding to the challenges they face, we can get more people into good jobs and unleash the full potential of our region. I look forward to continuing to work with partners on the recommendations and delivery of LSIPs, drive growth in our region, and make it the best place to do business, live, learn and work.

David Hughes CBE, Chief Executive of the Association of Colleges , said:

The Post 16 white paper rightly sets out the need for a more coherent, better co-ordinated education and skills system which can meet the government’s opportunity and economic growth ambitions. That system has to be national as well as local and that’s where LSIPs have a critical role to play. It’s good to see in this new guidance how the vision for LSIPs and DfE thinking has developed, learning from the first round of plans – with a much stronger connection to elected Mayors, and recognition of the role colleges have to play as strategic partners in the development, as well as delivery of the plans. Crucially, there’s a big role for Skills England and elected mayors in bringing this all together nationally and locally. We want the system to be able to identify where things are working well and where there are challenges in delivering on skills priorities, and thus ensure that the plans add value and make for a more coherent whole, across regions and across the country.

Vivienne Stern, Chief Executive, Universities UK, said:

Universities are engines of local growth and this new guidance rightly places them at the heart of local skills planning. Working with employers and FE providers, universities are building our future workforce and providing local people with new opportunities. From higher technical qualifications through to PhD level study, graduate skills are crucial to the UK’s prosperity. Over the next decade, demand for high level skills will grow significantly, with government forecasting that more than 11 million extra graduates will be needed by 2035. Collaboration at a local level will ensure local communities have access to the talent pipeline needed to drive innovation, productivity, and economic growth.

Corin Crane, Chief Executive Officer, Coventry and Warwickshire Chamber of Commerce, said:

The West Midlands and Warwickshire LSIP has been an incredibly successful tool that has put local employers at the heart of skills planning and built a powerful collaboration between business, providers and funders. As we all know, skills needs are ever evolving, so it is vitally important that this is seen an ongoing piece of work to engage with businesses and ensure the skills and training they need to grow are being met. We welcome the Minister’s commitment to the LSIPs with funding for this second stage, as we continue to campaign for our local employers and their need for more flexible skills funding and shorter, bespoke courses, a focus on recruitment, flexibilities with the apprenticeship levy and genuine sectoral focus for our key industries.

Suzie Branch-Haddow, Chair of Skills West Midlands and Warwickshire and Vice Principal at BMet College, said:

LSIPs are enabling the FE sector to strengthen collaboration with the business community — helping us to further understand and respond to regional skills needs. Their tangible impact can be seen in how FE providers, both colleges and independent training providers, have come together to offer a unified, branded service that provides employers with a clear, single point of access – a request made by businesses in the LSIP research. By simplifying the landscape and delivering a shared service to businesses, we’re living our commitment: Our Business is Your Business.

Dr Rebecca Gater, Principal and Chief Executive, Solihull College & University Centre, said:

LSIPs have transformed the way colleges and employers work together, fostering genuine collaboration to tackle skills gaps. We are delighted to support the second round of LSIPs and refreshed guidance, which will build on this partnership approach and deliver even greater impact for our communities.

Rob Colbourne OBE, Chief executive Officer of independent training provider, Performance Through People, said:

The LSIP programme has made a substantial positive contribution to the West Midlands and Warwickshire, especially for independent training providers, who are not always involved in these types of programmes as a true partner, which has definitely not been the case on this occasion. It feels like a genuine partnership between all stakeholders, tackling skills needs that employers have highlighted, especially focusing on key themes such as green and digital skills.

Alison Torrens, Universities West Midlands, said:

Universities did a great deal of work in the research element of the first LSIP but we were not, collectively, delivery partners. That is something we can address in this second phase as we have a critical role to play.

Emily Stubbs, Head of Policy at Greater Birmingham Chamber of Commerce, said:

We have got so much evidence and research now that we can now go out to more businesses and really look at the solutions.

Notes to editors:

Employer Representative Bodies will have a lead role with the development of LSIPs and are responsible for engaging local employers, including Small and Medium-sized Enterprises (SMEs) - so they share their training needs and engage with the skills system through design and delivery of provision, work placements, and contributing facilities and equipment.

Strategic Authorities in devolved areas will work jointly with Employer Representative Bodies on LSIP development, implementation, and review - combining employer and sectors’ insight with local economic expertise and influence over businesses and training providers. Local authorities will be closely involved for non-devolved areas.

further education, higher education, and independent training providers, including colleges and universities are expected to use their delivery expertise and employer links to identify skills needs, review programmes, share intelligence, and work collaboratively to ensure quality provision fits with local priorities. The introduction of the Lifelong Learning Entitlement (LLE) (https://www.gov.uk/government/publications/lifelong-learning-entitlement-lle-overview/lifelong-learning-entitlement-overview), from January 2027, as the new student finance system at levels 4 to 6, will help deepen this partnership. It will fund modular provision and offer more flexible student finance options. LSIPs will help to ensure this is linked to key growth priorities for their areas.

from September 2026, learners will be able to apply for LLE funding for the first time for courses and modules starting from January 2027 onwards

The English Devolution White Paper, (https://www.gov.uk/government/publications/english-devolution-white-paper-power-and-partnership-foundations-for-growth) titled “Power and Partnership: Foundations for Growth”, was published in December 2024

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