Government bodies questioned on spending review: Absent workforce strategy leaves implementation in doubt
In a bid to support British business growth and tackle the NHS staffing crisis, the UK government has announced a comprehensive strategy that focuses on skills investment, immigration reform, and targeted sector strategies.
**1. Skills Investment and Apprenticeships**
The 2025 UK Spending Review has committed £1.2 billion a year by 2028–29 to train over a million young people, with a significant focus on apprenticeships and skills development across various sectors. This investment includes an additional £4.7 billion per year for schools to improve teacher pay and special education needs support, aiming to build a stronger domestic workforce capable of meeting business and public sector needs, including the NHS. Employers are encouraged to expand apprenticeship schemes to benefit from grants, subsidised training, and recruitment support [1].
**2. Prioritising Domestic Skills Development through Immigration Reform**
The UK Immigration White Paper of May 2025 mandates raising the minimum qualification for skilled worker visas to RQF Level 6 (degree level), narrowing the reliance on lower-skilled overseas workers and focusing on attracting highly skilled professionals where domestic supply is insufficient. This policy recalibration supports longer-term workforce sustainability for British businesses and the NHS by focusing on homegrown talent [2][5].
**3. National Skills Drives in Emerging and Critical Sectors**
Initiatives such as the TechFirst programme, with a £187 million investment, equip one million secondary school pupils with digital and AI skills. Additionally, Skills England is coordinating sector-specific skills assessments aligned with the Industrial Strategy to target growth areas and critical sectors, including healthcare. The introduction of the Growth and Skills Levy will provide funding to build capabilities across all mission areas, including securing a future-ready NHS, helping address staffing crises there [3][4].
**4. Strengthening Workforce Strategies and Compliance Systems in Businesses**
With changing immigration criteria, businesses are urged to review and adapt their workforce recruitment, training, and compliance systems. This includes assessing cost implications and investing in skills to ensure they can fill roles domestically where possible, alleviating pressures on sectors like the NHS that historically depended on international recruitment [2].
The success of this strategy hinges on its ability to grow the British workforce sustainably, support business expansion, and address acute staffing shortages in the NHS. The upcoming Industrial Strategy presents an opportunity to address workforce development as an economic essential, not just an employment rights issue.
Notably, the prospect of apprenticeship levy reform is exciting, but awaits practical details. Taxing businesses cannot induce growth, especially when firms need to invest. The success of British businesses is crucial for the future funding of public services.
[1] Gov.uk. (2025). 2025 UK Spending Review. [online] Available at: https://www.gov.uk/government/publications/2025-uk-spending-review
[2] Home Office. (2025). UK Immigration White Paper. [online] Available at: https://www.gov.uk/government/publications/uk-immigration-white-paper
[3] Department for Education. (2025). TechFirst programme. [online] Available at: https://www.gov.uk/government/publications/techfirst-programme
[4] Skills England. (2025). Industrial Strategy Skills Assessments. [online] Available at: https://www.gov.uk/government/publications/industrial-strategy-skills-assessments
[5] HM Treasury. (2025). Growth and Skills Levy. [online] Available at: https://www.gov.uk/government/publications/growth-and-skills-levy
- To ensure adequate support for businesses and tackle the NHS staffing crisis, the government is encouraging employers to expand apprenticeship schemes and invest in skills development across various sectors, offering grants, subsidised training, and recruitment support.
- To maintain a sustainable workforce for British businesses and NHS, the UK Immigration White Paper of 2025 raises the minimum qualification for skilled worker visas to RQF Level 6 (degree level), with the goal of attracting highly skilled professionals where domestic supply is insufficient.
