DD2541 Skills Advisory Panel implementation funding 2021-22

1.1 SAPs were a 2017 HM Government manifesto commitment and a key initiative under Government’s Industrial Strategy to address mismatches between skills supply and employer demand more effectively.

1.2 There are now 36 well-established SAPs within Mayoral Combined Authorities (MCAs) and Local Enterprise Partnerships (LEPs) across the country, bringing together local employers, skills providers and local government to pool knowledge on skills and labour market needs, and to work together to understand and address local skills challenges. Grant funding in previous years has helped increase the quality of local-level labour market analysis and strengthen the links between local employers, skills providers, and other relevant stakeholders.

1.3 SAPs are local partnerships that strengthen the link between public and private sector employers, local authorities, colleges, universities, and independent training providers. They operate at a local level through MCAs or LEPs to identify the current and future skills needs in their area, ensuring provision better matches local employment opportunities and local employers’ needs. SAPs adopt a local leadership role on skills and are expected to identify skills priorities for the area based on high-quality analysis.

1.4 SAPs aim to bring together local employers and skills providers to pool knowledge on skills and labour market needs, and to work together to understand and address key local challenges. This includes both immediate needs and challenges and looking at what is required to help local areas adapt to future labour market changes and to grasp future opportunities. This will help colleges, universities and other providers deliver the skills required by employers, now and in the future.

1.5 In order to achieve this aim, in 2019-20 and 2020-21 the DfE provided £75,000 funding to each local area for the purpose of building capacity, growing local capability sustainably and for producing high quality analysis to underpin the work of the SAP. This was approved under DD2345 and DD2463.

1.6 The DfE has now confirmed an additional £75,000 funding to each SAP area in 2021-22. The funding is expected to be used to achieve three broad objectives:

• continue to produce high quality local-level skills analysis

• maintain relationships to deliver the local skills agenda

• refresh Local Skills Reports.

1.7 On behalf of the GLA, the SfL Board holds the SAP responsibilities for London , closely supported by the SfL Business Partnership and the London Economic Action Partnership (LEAP) - the Local Enterprise Partnership for London. The SfL Board is asked to consider all SAP funding decisions.

1.8 The first London Local Skills Report, a requirement of the 2020-21 SAP funding, was published in March 2021. The report is expected to be refreshed in November 2021 and annually thereafter.

2.1 The £75,000 funding is provided for the 2021-22 financial year and will be used to fund the renewal of the GLA subscription to the Emsi job-postings data for the period 1 July 2021 to 30 June 2022 and to fund a Grade 10 role in the second half of the financial year. This role will support the work of the Skills and Employment Unit by conducting strategic analysis of London Skills system and labour market, helping inform Adult Education Budget (AEB) delivery.

2.2 Renewing the subscription with Emsi will allow the GLA to further develop its understanding of skills demand in London and to maximise the value and use of Emsi data through additional data analysis and products. It will also support further detailed analysis of online vacancy trends in the next version of the London Local Skills Report.

2.3 The current GLA subscription with Emsi is due to expire on 30 June 2021. Under advice from TfL Procurement, GLA officers recently ran competitive tender process based on a Request for Quotation Form in accordance with the GLA Contracts and Funding Code. Through this process, Emsi was identified as offering greater value for money.

2.4 The Grade 10 role was approved by the Chief Officer on 25 May 2021 (CO-284) through the GLA’s Establishment Control Procedure. As the SAP funding is not confirmed for future years, the GLA will explore other sources of funding for the Grade 10 role and the renewal of the GLA subscription to the Emsi job-postings data beyond June 2022.

2.5 As indicated above, the work will be overseen by the SfL Board, which is the SAP for London, working closely with the SfL Business Partnership and LEAP. This will ensure that the analysis produced by the posts is able to influence strategic skills and employment decisions in London.

2.6 In order to receive the funding, the GLA will be required to enter into a MoU with the DfE, detailing current capacity and capabilities and setting out the arrangements to use the funding to grow local analytical capability and deliver the SAP role sustainably.

2.7 The DfE published further guidance on the role and governance of SAPs in 2019. The guidance sets out how HM Government will support SAPs and its expectations as to their role, structure and governance.

3.1 In carrying out any functions in respect of his skills and employment programmes, including the work of the SAP, the Mayor will comply with the public sector equality duty under section 149 of the Equality Act 2010.

3.2 Under Section 149 of the Equality Act 2010, as a public authority, the GLA must have ‘due regard’ of the need to:

• eliminate unlawful discrimination, harassment and victimisation

• advance equality of opportunity and foster good relations between people who have a protected characteristic and those who do not

• foster good relations between persons who share a relevant protected characteristic and persons who do not share it.

3.3 The evidence base for the SfL Strategy found that key groups with protected characteristics, including women, Black, Asian and minority ethnic Londoners and disabled Londoners are under represented in London’s labour market. The funded posts will support work to develop actions to address this, including the prioritisation of inclusive and good quality education and transition opportunities for all, with targeted actions to improve access for protected and under represented groups. The posts will also support the development of proposals to deliver economic fairness and a more inclusive London, with proposed actions to promote diversity, inclusion and community cohesion.

4.1 The £75,000 funding confirmed by the DfE for each SAP area is for 2021-22 only. The GLA notes that the MoU between the GLA and the DfE stipulates that there should be no expectation, at the current point in time, that further funding will follow in future years as it is subject to any outcome of Spending Reviews and local areas must plan on this basis.

4.2 Uncertainty about the labour market landscape in light of any cessation of Government support for businesses affected by the Covid-19 pandemic may have an impact on the next version of the London Local Skills Report. Only the latest data that is available at the time of publication will be used to support any analysis or recommendations made in the report.

4.3 SAP funding is not guaranteed beyond 2021-22. If the funding from the DfE is to cease, then the expenditure will be contained in within the AEB.

Links with Mayoral Strategies and priorities

4.4 The funded post will primarily be involved in producing analysis to better understand the supply and demand for skills in London. The funded post will, for example, be involved in producing analysis for the London Local Skills Report.

4.5 The funded post will also support the development of employment and skills policy and programmes in London. The SfL Strategy sets out the need to improve London’s skills system across a number of areas, particularly the AEB which has been delegated to the Mayor.

4.6 The London Local Skills Report will include references to any work underway in London to support the Local Skills Improvement Plans that were proposed in the Skills for Jobs white Paper, published in January 2021.

4.7 There are no conflicts of interest to declare from those involved in the drafting or clearance of this decision.

5.1 This decision is seeking the approval of receipt of £75,000 from the DfE in 2021-22 for the SAP. This will be used to fund the renewal of the GLA subscription to the Emsi job-postings data for the period 1 July 2021 to 30 June 2022 and to fund a Grade 10 role in the second half of the financial year.

6.1 The foregoing sections of this report indicate that the decisions requested of the Mayor concern the GLA’s exercise of its general powers to do such things considered to further or which are facilitative of, conducive or incidental to the promotion of economic development and wealth creation in Greater London and in formulating the proposals in respect of which a decision is sought officers have complied with the GLA’s related statutory duties to:

6.1.1 pay due regard to the principle that there should be equality of opportunity for all people

6.1.2 consider how the proposals will promote the improvement of health of persons, health inequalities between persons and to contribute towards the achievement of sustainable development in the United Kingdom

6.1.3 consult with appropriate bodies.

6.2 In taking the decisions requested, the Mayor must have due regard to the Public Sector Equality Duty - namely the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010, and to advance equality of opportunity and foster good relations between persons who share a relevant protected characteristic (race, disability, gender, age, sexual orientation, religion or belief, pregnancy and maternity and gender reassignment) and persons who do not share it (section 149 of the Equality Act 2010). To this end, the Mayor should have particular regard to section 3 (above) of this report.

6.3 Should the Mayor be minded to make the decisions sought officers must ensure that an appropriate contract is entered into and executed by the GLA and EMSI before the commencement of the supplies and services.