Budget 2024: What Talent and Skills Leaders Need To Know

31 October 2024

Budget 2024

Yesterday’s Budget announcement from Chancellor Rachel Reeves marked Labour’s first Budget in 14 years and set out their plans to drive economic growth by increasing investment and restoring economic stability in the UK. 

This briefing note provides an overview of how the October Budget will impact organisations’ skills and training objectives and budgets. 

As part of the Budget’s focus on ‘Rebuilding Britain’, the Chancellor re-affirmed the government’s commitment to addressing the nation’s skills challenges which are holding back growth, as well as supporting more people into work.  

Investments and initiatives

While overall, Reeve’s first budget was bold in scale, for our sector, new announcements were limited:

  1. FE Sector: an additional £300 million in funding for further education in England, aligning to Labour’s commitment to focus on young people. While welcomed, this figure is low,  plus, specific details of how this will be invested have not been included in the Treasury’s budget documents.
  2. Apprenticeship Reforms: £40 million was committed to delivering new foundation and shorter apprenticeships in key sectors, as part of initial steps towards a reformed
    Growth and Skills Levy.
  3. Lifelong Learning Entitlement (LLE): The launch date was pushed back to January 2027, although Labour reasserts that they are committed to the initiative, which is planned to expand access to flexible education and training for adults throughout their working lives.

As anticipated, reform for the Education Budget focused more heavily on schools:  

  1. Education Budget Increase: A £2.3 billion rise in the core schools’ budget, including £1 billion for special educational needs, aims to improve overall education quality and teacher recruitment.
  2. Capital Investment: A substantial £6.7 billion was earmarked for education capital investment, meaning mostly school rebuilding and maintenance, with £950 million dedicated to skills capital.

There was no mention of reform to the funding of Level 7 apprenticeships.

What this means for talent and skills leaders

Yesterday’s Budget, was in line with what we already know about Labour’s plans for growth and skills with no shocks for our sector, although the rise in Employer NIC will not be without its indirect implications.  

At Corndel, we welcome the Growth and Skills Levy and the creation of Skills England. Greater flexibility will benefit employers and allow more employees to gain new skills. We are committed to partnering with you throughout the gradual implementation of these changes, helping you navigate the opportunities for your organisation. 

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