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Employment, Universities and Skills and Housing

The important thing is that we maintain our investment in science and research, continue to develop organisations such as the Technology Strategy Board, and continue to recognise those parts of the economy in which we have a particular strategic strength and advantage. That means working with those areas of the economy, whether through investment in innovation and research, or through the development of skills. So far as Formula 1 is concerned, it is well recognised that there is a triangle of particular expertise in this country, which goes beyond any one particular race team. It has specialist companies within it, and it has links to wider manufacturers. The hon. Gentleman asked me to look at what is happening in the Formula 1 industry, and I am more than happy to do so, but I am quite clear that our commitment to investment in research and innovation lies at the heart of creating the conditions in which such activity can continue. Train to Gain is not the only issue on which the Government have listened to business. As everyone will have heard, business said that it found the skills landscape too complex, so we are implementing the simplification proposals of the UK Commission for Employment and Skills. We are merging the Train to Gain brokerage service with Business Link. Employers asked us to cut bureaucracy in apprenticeships, and we did. They asked us to ensure that high-quality employer training could be accredited, and we did. We know that as we respond to the downturn, we need to make further changes. We have already announced additional funding from the European social fund to support skills advice and training for those who lose their jobs, or fear that they may do so. I want to ensure that more of the £5 billion annual investment in further education and skills helps people to get back into work. I want more people to get support before redundancies occur or short-term contracts come to an end. Where a business moves on to short-time working, there will be more scope to offer free, short-term and intensive training for employees. I would urge any company, large or small, that is considering short-time working to follow the example of Nissan and JCB, and to talk to their local further education college or the Learning and Skills Council about what training they can offer their staff during that down-time. When redundancies or the shedding of contract labour is pre-announced, colleges and training providers need more flexibility to provide training support before jobs are lost. The changes underline why further change to the organisation of the skills system is needed as we move towards greater responsiveness to employers, greater flexibility in the skills system and greater flexibility for providers. Under the Conservative party, post-16 education and training was a disaster. The Conservatives rightly gave colleges independent incorporated status, but then denied them funding and support. By 1997, in the confusion created by the training and enterprise councils, FE spending had been cut in real terms in the previous four years. There was no capital budget. The National Audit Office said that some FE buildings were not fit for purpose, and only half the people who started a course completed it. The establishment of the Learning and Skills Council enabled the Labour Government to transform the scene. Completion rates are now 80 per cent., and that work is concentrated on the most useful qualifications. Investment in skills has risen by 50 per cent., and we are halfway through a £4.3 billion capital programme. The success of the LSC means that we can change to meet changing challenges. In 16-to-19 education, the challenges are securing proper, coherent planning of the curriculum; the raising of the participation age, which the Conservative party opposes; and taking clear responsibility to further reduce the number of those not in education, employment or training.