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Business Leaders Question Effectiveness of £283 Million Skills Investment

The UK government’s £283 million plan to train the next generation of builders, coders, and engineers has drawn criticism from business leaders, who say the funding is “too little, too late” to tackle the country’s pressing economic and housing challenges.

Ministers said the package will support young people in gaining skills needed to meet growing demand for homegrown workers. About £100 million will go to metro mayors and local leaders to expand construction courses at further education colleges, aiming to ease long waiting lists and train an additional 60,000 construction workers. The remainder of the funding will give local authorities flexibility to increase college capacity more broadly, ahead of an anticipated rise of 67,000 extra 16- and 17-year-olds entering post-16 education by 2028.

Critics argued the plan fails to address immediate skills shortages or broader economic obstacles. Michelle Lawson, director of Lawson Financial, said the announcement overlooked urgent needs. “The problems we have are now, not in 2028 or 2030,” she said. “Apprenticeships are rare, employers are under huge cost pressure, and there is no time to wait.”

Some experts questioned whether a lack of skilled workers is truly the root cause of housing and economic challenges. Rohit Parmar-Mistry, founder of data firm Pattrn Data, said the policy risks misdiagnosing the problem. “The real bottleneck isn’t labour; it’s land-banking. Developers have hoarded land with planning permission for years. You can train an army of workers, but if the incentives reward scarcity, those workers will sit idle.”

Concerns were also raised about the appeal of construction careers. Kundan Bhaduri, entrepreneur and landlord, noted that the sector is losing talent to early retirement and regulatory fatigue. “Promising 60,000 additional construction workers to deliver 1.5 million homes sounds impressive, but the real question is whether young people will choose construction in an economy that treats housebuilders and landlords like pariahs,” he said.

Other industries may further undermine the plan. Colette Mason, AI consultant at Clever Clogs AI, warned that digital infrastructure projects are attracting skilled workers away from housing. “Data centres are hoovering up construction workers faster than we can train them, and they pay better,” she said, citing £36 billion worth of ongoing projects.

Experts also highlighted the need for better coordination across government. Kate Underwood, founder of Kate Underwood HR and Training, said funding will have limited effect unless colleges, jobcentres, and local employers align training with actual vacancies. “If it’s more silos, different rules and more forms, we’ll still be fighting over the same tiny pool of talent,” she said.

While ministers argue that the investment is vital for future-proofing the workforce, critics warn that without urgent reforms to planning, incentives, and employer support, the £283 million package risks addressing problems long after they have taken a toll.

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