The new Growth and Skills Levy must end the 'cycle of policy failure' in addressing Britain's chronic skills shortages, according to the Resolution Foundation.
The think tank says the government must get its design and implementation right if it's to boost the number of apprenticeships after years of decline and ensure that Levy funds go to young people who need it most.
The Foundation says that Britain's chronic skills shortages are underlined by the fact that the share of job vacancies caused by firms finding it hard to recruit people with the right skills or qualifications has more than doubled over the past decade from 16% in 2011 to 36% in 2022.
Skills shortages aren't just preventing firms from recruiting either: an increasing share of workers are judged by their current employers to not have the right level of skills required to do their job.
Louise Murphy, Senior Economist at the Resolution Foundation, said:
'For too long, well-intentioned reforms have failed to end the cycle of failure when it comes to addressing chronic staff shortages across Britain.
'One-in-three vacancies today stem from firms not being able to find people with the right skills, while too many young people struggle to find a route into skilled work that doesn't involve university.
'The new Growth and Skills Levy offers a fresh chance to break this cycle. But the government must get the detail right if it's to avoid repeating the same policy mistakes.'
Internet links: Resolution Foundation