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Building a High-Skilled Economy

I have already celebrated the hon. Gentleman's assiduity, and his numeracy skills are obvious, too. He is right: the money is being taken from the Train to Gain budget, and it is being allocated to capital. The justification for that is the urgency of the problem. Had the Labour party organised the capital funding in FE in anything like a reasonable way, we would not have to take these emergency measures. That will bring some light to those colleges who were for so long, as I was, in the shadows—in the darkness. The hon. Gentleman will also know that this is therefore a one-off programme, but we will now look at a longer-term set of proposals for FE capital, and in my estimation even this short-term measure will deliver benefit to 150 colleges across the country. There will be more details next week. I know that the hon. Gentleman cannot wait—the whole House is excited—but he must, because I cannot give all the presents out on the same day; some have to be saved for Boxing day. There has to be a better way to take advantage of the immense human capital in the college system, to build a high-skilled, high-tech economy. We really must offer a new beginning. That is why I want to move to the four points that lay at the heart of the letter that I wrote today, and then to my exciting conclusion. The letter that I have written today to the principals of all colleges sets out ways in which we will set FE free. First, I am removing the requirement to complete summary statements of activity, with a resulting reduction in performance monitoring of employer responsiveness. Secondly, the Government have already announced the removal of Ofsted inspections for schools with outstanding performance. I will work with ministerial colleagues to introduce the same way of working in the FE sector, removing inspections for colleges with outstanding performance. Thirdly, I will remove the regulatory requirement for college principals to undertake the principals qualifying programme, not because I do not want appropriately qualified principals—I know that there are a range of development opportunities and qualifications that can enhance managers', leaders' and principals' skills to run colleges in the 21st century—but because individuals in our institutions should be free to decide what package of development is appropriate to support their individual circumstances. Fourthly and most importantly, I will enable all colleges except those that are performing poorly to move money between adult learner and employer budgets, because they, rather than Ministers, know how best to meet the needs of local learners and employers. All those measures are intended to increase the power of colleges to determine how best to manage their affairs in the light of local training needs. I want not just to encourage them to listen to what local people and local businesses have to say, but to be free to act, to respond and to use that information with a minimum of fuss, delay and administrative cost. This is only the beginning—a first indication of the Government's determination to deliver on the promises we made to providers when we were in opposition. We are drawing a line under the mistakes of the past and reaching for a better future. It is true that our debate takes place in difficult circumstances and that the public sector will be obliged to make efficiency savings. It is also true, as I said earlier—I want to be honest about this—that no guarantees can be offered about future funding. With freedom comes a fresh challenge, so as unnecessary compliance costs are reduced, I will be looking to colleges to find efficiencies. They would expect that, as would the House. That will include encouraging colleges to find more cost-efficient ways of conducting their affairs, such as by merging back-office functions and streamlining their procurement processes. If the Government had done that earlier—when Labour Members controlled the purse strings—we could have made more progress to match and beat the performance of the competitor countries to which I referred that have outpaced us on apprenticeships and driven up the skills of their work forces to an extent that we have not. The Train to Gain programme was part of the problem. I know that former Ministers are obliged to defend it, but they know what the National Audit Office said about its dead-weight cost. They know that assessment was too often dressed up as training and that the brokerage service at the programme's heart was, at best, only a partial success. Before my appointment as Minister, I was fortunate enough to enjoy a long apprenticeship as shadow Minister. Over those years, I held countless meetings with college principals and visited innumerable colleges throughout the country. Everything that I said in opposition, and everything that I say now in government, has been informed by the views and opinions of the sector. We will continue that dialogue about shaping further education in this country—alongside the needs of business and industry, and combined with the Government's priorities—in a way that delivers opportunities to a new generation of learners. The stakes are high. The ability of our economy to adapt to rapidly changing circumstances depends in no small measure on the capacity of workers to adapt. They need to be sure of the promise that new skills and knowledge will lead inexorably to new and better chances in life. My aim—and my commitment—is to make good on that promise for the next generation. Today, a start has been made, but there is much more to do to build a country with the skills that we need to compete, a country ready to elevate the practical, and a country where learning is valued for its own sake and for its economic, social and cultural benefits: proud, confident learners, colleges free to respond and a dynamic, highly skilled economy—Britain being the best that it can be.