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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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Fraudsters are increasingly using AI-generated images and videos to trick people into handing over sensitive personal and financial information, according to FraudSMART, the financial crime awareness initiative operated by the Banking and Payments Federation Ireland (BPFI). The organisation has reported a rise in online adverts promoting fake, State-backed investment schemes. These scams often use fabricated images of well-known politicians and business figures to make the offers appear legitimate and encourage users to click on registration links. Niamh Davenport, head of financial crime at BPFI, said scammers are deliberately exploiting recent media coverage of a planned State-backed savings and investment scheme to give their frauds a sense of credibility. “They often claim the scheme is open to everyone, but that places are limited and being ‘snapped up’ fast, in order to pressure people to act quickly,” she said. “They typically promise guaranteed returns or a guaranteed monthly income.” FraudSMART said that while anyone can be targeted, people in their early 50s are particularly vulnerable to investment scams. This age group is often focused on retirement planning, making them more receptive to financial offers that appear secure or high-yield. According to the organisation, most scams follow a similar pattern. Victims are first directed to click a registration link and complete a short online form providing their contact details. They are then contacted by someone posing as a financial adviser, who urges them to make an immediate “security deposit” to secure participation in the scheme. Once a payment is made, the money is quickly moved through multiple accounts, often overseas, making recovery extremely difficult. Davenport warned that scammers are becoming more sophisticated in their use of technology, particularly AI tools that allow them to create realistic but entirely fake promotional content. These materials are designed to mimic legitimate financial advertisements and build trust with potential victims. Recent figures from An Garda Síochána show investment fraud rose by 20% last year, with losses exceeding €20 million. The scale of individual scams varies widely, ranging from smaller crypto-related frauds involving a few hundred euro to large-scale investment schemes where victims lose tens of thousands. FraudSMART is urging the public to remain cautious when encountering online investment advertisements, especially those promising guaranteed returns or requiring urgent action. It also advises consumers to avoid sharing personal information with unverified sources and to be wary of pressure tactics designed to rush financial decisions. Authorities continue to warn that fraudsters are adapting quickly, using advanced digital tools to target victims across multiple platforms.

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Business

Fraudsters are increasingly using AI-generated images and videos to trick people into handing over sensitive personal and financial information, according to FraudSMART, the financial crime awareness initiative operated by the Banking and Payments Federation Ireland (BPFI). The organisation has reported a rise in online adverts promoting fake, State-backed investment schemes. These scams often use fabricated images of well-known politicians and business figures to make the offers appear legitimate and encourage users to click on registration links. Niamh Davenport, head of financial crime at BPFI, said scammers are deliberately exploiting recent media coverage of a planned State-backed savings and investment scheme to give their frauds a sense of credibility. “They often claim the scheme is open to everyone, but that places are limited and being ‘snapped up’ fast, in order to pressure people to act quickly,” she said. “They typically promise guaranteed returns or a guaranteed monthly income.” FraudSMART said that while anyone can be targeted, people in their early 50s are particularly vulnerable to investment scams. This age group is often focused on retirement planning, making them more receptive to financial offers that appear secure or high-yield. According to the organisation, most scams follow a similar pattern. Victims are first directed to click a registration link and complete a short online form providing their contact details. They are then contacted by someone posing as a financial adviser, who urges them to make an immediate “security deposit” to secure participation in the scheme. Once a payment is made, the money is quickly moved through multiple accounts, often overseas, making recovery extremely difficult. Davenport warned that scammers are becoming more sophisticated in their use of technology, particularly AI tools that allow them to create realistic but entirely fake promotional content. These materials are designed to mimic legitimate financial advertisements and build trust with potential victims. Recent figures from An Garda Síochána show investment fraud rose by 20% last year, with losses exceeding €20 million. The scale of individual scams varies widely, ranging from smaller crypto-related frauds involving a few hundred euro to large-scale investment schemes where victims lose tens of thousands. FraudSMART is urging the public to remain cautious when encountering online investment advertisements, especially those promising guaranteed returns or requiring urgent action. It also advises consumers to avoid sharing personal information with unverified sources and to be wary of pressure tactics designed to rush financial decisions. Authorities continue to warn that fraudsters are adapting quickly, using advanced digital tools to target victims across multiple platforms.

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