Ben Everitt: Why the plan for a new technical university in Milton Keynes offers a fresh model for higher education

16 Sep

Ben Everitt is the MP for Milton Keynes North.

We have world class universities in this country, which provide some of the highest calibre graduates around. We must maintain and protect our best institutions. But speaking to businesses in my constituency, they tell me that what they want isn’t always graduates. It’s workers with technical skills, an understanding of the industry they want to work in, and who are ready to work in teams and who can communicate.

That’s why this Government is right to be taking a hard look at the system of higher and further education in this country. It isn’t ‘anti university’ to be asking whether the current system provides the best opportunity for those going through it, for the businesses who will employ them, and for the taxpayer. It’s making an argument for a world class higher and further education system for everyone, in a wider variety of forms.

And when we think about what that looks like, we don’t have far to go. We should take inspiration from one of this Conservative Government’s proudest achievements – Free Schools. These schools, often set up in the poorest areas of the country by innovative teachers and heads, were distinctive not just because they were new, but because they offered something different.

Like the best businesses, they spotted a gap in the market and they provided a solution to fill it. And many of them – such as Michaela Community School, run by the outstanding Katharine Birbalsingh – have been successful precisely because they have maintained this focus over time, rather than doing everything.

We have some of that in higher education, but not enough. In my constituency, for example, the Open University does a brilliant job because it focuses on a specific remit – providing flexible distance learning to those who don’t want to, or aren’t able to, undertake traditional three year full time undergraduate degrees. To adapt the Steve Jobs maxim, it does not try to do everything – it does one thing, and does it well. But we need more innovation from the higher education sector, not more of the same.

It’s why I’m such a strong supporter, alongside my fellow Milton Keynes MP Iain Stewart, of the new proposed technical university in my constituency, Milton Keynes University (MK:U). This institution, modelled on the best technical universities in Germany and the United States, has identified a clear gap, which is the shortage of digital and STEM skills in the economy throughout Milton Keynes. I’m privileged in my constituency to sit in the middle of the Oxford to Cambridge Arc – a zone of immense prosperity and economic growth that is home to world class businesses and innovation.

But what Milton Keynes needs is people who can work in these businesses – and who have qualifications that are industry ready. And that’s what MK:U will deliver. By 2021, MK:U plans to be delivering degree apprenticeships in the critical shortage areas of data science, cyber security, digital technology, and management. By 2024, when the university is fully on stream, it will continue to deliver at least half of its provision via degree apprenticeships.

It will also work closely with the new South Central Institute of Technology to deliver high quality technical qualifications at what are called Level 4 and 5 – above the level of school qualifications, but quicker to achieve and more industry-focussed than traditional degrees.

The reason I’m so confident in the success of MK:U is that the team there have been overwhelmed by interest from businesses. Over a hundred major employers, who between them employ over 700,000 people in the UK alone, are backing MK:U, including top-level support from Arriva, Bosch, BT, Capita, Grant Thornton, Network Rail, PwC, Sainsburys, and Santander – who specifically cited MK:U as a key element in its decision to locate its new £150 million Digital Hub in Milton Keynes, and has committed £10 million capital funding and £20 million of in-kind support, to MK:U.

MK:U is backed by Cranfield, the world recognised postgraduate university with a long track record in scientific and business research, and another example of an institution that knows what it does and does it well. Like Cranfield, and like the OU, MK:U will keep to its mission. It won’t offer a wide range of liberal arts and humanities degrees. It won’t chase faddish new disciplines and courses merely to attract students. It will focus on driving prosperity in the Arc, and for the UK more widely.

I know that Ministers in the Education and Communities departments, and in the Treasury are studying the proposal closely as we approach the Spending Review. It has the potential to make a real difference – and to provide a model that other, ‘Free’, universities could follow too.

Alison Cork: Entrepreneurs can lead Britain’s recovery if we help them

23 Aug

Alison Cork is an entrepreneur, Ambassador to the British Library Business & IP Centres and founder of not for profit Make it Your Business

Faced with mounting job losses and economic stagnation, we are at a defining moment in our nation’s history.

As a lifelong entrepreneur, I believe this is also a moment of opportunity, when Britain should become a nation that champions people to start a business. Entrepreneurs are the job creators of the future, and we are going to need them.

Whilst Covid has triggered the economic challenges which have resulted in job losses, people are now much more attuned to the idea of working independently. As family dynamics shift there will possibly be an increase in the number of women wanting to work.

Whole industries such as retail and hospitality are redefining how they operate. In many ways, Covid has created a perfect catalyst to encourage self-employment as a viable alternative for people who might otherwise have stuck with traditional employment or role models.

The challenge is how we normalise entrepreneurship. Historically we have tended to view my breed as outliers, and it is true that entrepreneurs are a bit different in the way we think, view risk and spot opportunities. What we need to do now is deliver the correct framework to support that mindset, and to understand what entrepreneurship really means.

So often we focus on the huge businesses, the ‘unicorns’ of our economy. But I’m talking about the ‘acorns’ of our economy, kitchen table businesses which may only generate modest sums, but which make a material difference to the economic independence and self-respect of that person or family unit. Businesses which mean those people are not dependent upon state intervention. Margaret Thatcher got it. The daughter of a grocer, she was the poster girl of self-determination, and inspired people like me to go out and give it a shot.

Encouragingly, our current government has already made a very important contribution to this initiative. In the pre-Covid budget there was a £13 million grant to continue to roll out the British Library Business & IP Centre Network. Originated in London, the BIPC is a business advice and information service which anyone can access free of charge. Spanning market intel reports, IP advice, workshops and even one-on-one mentoring, the BIPC has an impressive track record of success, with businesses that use the resource four times more likely to succeed than those which don’t. It also returns almost £7 into the economy for every £1 of public money spent on delivering the service.

The plan is to use central and local libraries to create a hub-and-spoke model of Business & IP centres around the UK. A brand of trust, an existing physical infrastructure, an important civic building often located on or near the high street and heart of the community, libraries are the perfect impartial and non-judgemental environment from which to support would-be entrepreneurs.

In terms of levelling up, library BIPC’s can reach the parts of the country that other initiatives have never been able to reach. They also have a strong track record in encouraging women and BAME-owned businesses, both currently under-represented. Between now and 2030, we estimate the BIPC service will help establish over 150,000 new businesses, contributing over £1 billion to the economy. That’s job creation.

But if we are truly to become a nation that embraces small business, we need to look further back in the entrepreneurial life cycle, to education. Starting a business and understanding the many skill sets needed to succeed in self-employment should be part of the school curriculum. Perhaps it should even be built into our apprenticeships programme? Moreover, the recent furore over A Level results could ultimately impact on how students view career options, leading to self-employment as a more normal choice for school leavers.

Which brings me back to Margaret Thatcher. There are, of course, pieces of the self-employed jigsaw missing, and funding is one of them. It doesn’t matter how enthusiastic you are about starting a business, personal financial risk is the factor most likely to deter someone from going it alone. So, we might do well to revisit a version of the Enterprise Allowance Scheme introduced by her in 1981.

In a nutshell, the EAS paid a sum of money monthly to anyone unemployed who wanted to start a business. You had to show some savings and a business plan, but there was no vetting of the idea itself, just a no-strings opportunity to try something out and create a job or jobs. ‘What could possibly go wrong?’,I hear you say. But research showed that it created 325,000 jobs and 18 months after signing up, 65 per cent of recipients were still in business, and 25 per cent of them were under 25. Perhaps the library business centres could also administer these grants.

In terms of business-friendly legislation, let’s also look at employment law, to facilitate hiring and firing without fear of unreasonable reprisal; maternity pay that doesn’t disadvantage the self-employed; legislation around business coaches and advice – currently not subject to regulation or insurance requirements – and greater rigour around collection of bad debts and dealing with fraud.

The good news is that we have a government taking steps to deliver on the levelling up promise of the election manifesto. The library Business Centre network is an important part of the delivery of that promise. What we need now is a comprehensive suite of services to be the foundation stone of a truly authentic entrepreneurial culture.

Robert Halfon: Here’s how ministers can make an apprenticeship guarantee a reality

10 Aug

As a new CSJ report on apprenticeships shows, apprenticeships change lives. Combining a real job with training, apprentices earn while they learn.

They span a huge range of sectors – not just the important traditional heartlands of engineering and manufacturing, but finance, software design and the green economy, too.

The returns are extraordinary for all involved: apprentices go on to have excellent employment prospects, businesses benefit from new expertise, and every £1 invested in level three apprenticeships brings a £28 return to the economy. Apprenticeships are about as close to a win-win as it gets.

I was over the moon when the Prime Minister recently expressed his support for an apprenticeship guarantee – something I have been campaigning for over many years. An ambitious interpretation is now needed: we should work towards being able to guarantee that any young person who wants an apprenticeship, and who has the right skills and qualifications to do one, can make it happen.

Of course, this will not be possible from day one, but I’d like to highlight a number of areas that I think need the most attention.

First, small businesses must be supported to take on apprentices. The Chancellor took an historic and brave decision to protect businesses, particularly smaller ones, during lockdown. Now we can bring those businesses together with the extraordinary talent of our young people to develop new growth opportunities.

There really is potential here: tens of thousands of small businesses want to set up apprenticeships but cannot afford the training costs associated with this. We don’t need to stimulate demand here – it already exists. We just need to set it free, and the Government has the power to make this happen by supporting their training costs.

Second, ministers should use the levy as a strategic tool to close the skills deficit. This means refocusing the levy pot so that it primarily is used on apprenticeships for 16 to 24-year-olds and those from disadvantaged backgrounds.

Third, the public sector should set a stronger example. Apprentices in the NHS, and in other front-line services, did an incredible job during the pandemic. Building on this fine legacy starts with setting a much higher public sector apprenticeship target than the existing 2.3 percent. Public sector recruiters also have to be innovative in how they meet emerging needs by taking on apprentices, and we must hold them to account.

Moreover, public procurement contracts with big companies should be conditional on the number of apprentices they employ, particularly as we start to roll out the exciting flurry of new infrastructure projects that have been announced.

Fourth, we need more degree apprenticeships – my two favourite words in the English language. There are tough times ahead for universities, as there are for other businesses and education institutions. But there is also no better time to embrace a change that has been needed for some time. As practically-focused programmes (like the University of Essex’s collaboration with Edge Hotel School) show, the best graduates for industry are those who have fused theory with practice.

Over the next decade, universities should work towards a target of 50 percent of their students undertaking degree-level apprenticeships. A new round of the Degree Apprenticeship Development Fund would create more programmes like these.

But we must also make sure people know about apprenticeships and for this to happen, a more ambitious approach to careers advice is needed: proper enforcement of the Baker Clause, a UCAS-style system for Further Education, Skills and Apprenticeships, and more detailed destinations data.

Some will say that it won’t be possible to realise my ambition. It is, of course, easier to point out the obstacles that lie in our path than it is to remove them. But as Sir Nicholas Winton once said: “If it’s not impossible, there must be a way to do it.”

Ultimately, there is nothing inevitable about our current approach; we crafted it and, with the right will, ambition and imagination, we can easily choose to rebuild it. As the furlough scheme showed, we are perfectly capable of exercising all three. Apprenticeships should be placed where they belong – right at the core of our approach to learning and training. There are few better ways to climb the ladder of opportunity.

Charlotte Pickles: Ten million people are at risk of becoming unemployed. They must be Sunak’s priority this week.

5 Jul

Charlotte Pickles is Deputy Director and Head of Research at the Reform think tank.

The Chancellor’s economic statement next week may be his biggest test yet. During the last few days, UK firms have announced 12,000 job losses. John Lewis, Upper Crust, Topshop, Airbus, WH Smith, TM Lewin, Easy Jet, Accenture are just some of the household names cutting jobs. Small businesses will be doing the same; you just won’t hear about them.

This is the start of the wave of redundancies Reform predicted back in April when we called on the Government to extend the furlough scheme and make it more flexible. The Government stepped up then; they need to do so again. The alternative is the worst unemployment crisis since the Great Depression.

Some readers will be sceptical. Great swathes of the economy reopened this weekend. Across the pond, the American economy added almost five million jobs in June, and the rise in the Eurozone’s unemployment rate in May was lower than expected.

At home, Andy Haldane, Chief Economist at the Bank of England, announced that consumer spending had “risen both sooner and materially faster” than predicted, meaning the GDP hit could be half that predicted in May. Very good news indeed.

However, underneath these headline green shoots is a much starker picture. Haldane also says that the labour market outlook is not as encouraging – that unemployment could be worse than the Bank’s May forecast. As in much of Europe, where more than 40 million people remain supported on furlough schemes, we have no idea if furloughed workers will return to work or join the unemployment rolls.

So while it is promising news that the UK economy appears to be bouncing back, it would be dangerously foolish to assume a jobs recovery at the same pace. Indeed, vacancies last week were down 24 per cent on the previous week.

Next month, businesses are required to start contributing to the cost of their furloughed workers. That’s reasonable, over nine million people have had their wages subsidised and the Government cannot continue this £10 billion-a-month support indefinitely – not least as it risks keeping people in ‘zombie jobs’, delaying their move into new roles and damaging the economy further.

But the phasing out of the furlough scheme will trigger more redundancies. Hundreds of thousands of businesses have gone for three months with little to no revenue. The Government’s loans and grants provided a lifeline for many, but social distancing measures and people’s fear of the virus will mean suppressed revenues for some time.

Expenditure will have to be cut if businesses are to stay afloat – half of companies expect to make redundancies in the next few months.

Which is precisely why the Chancellor must use his statement on Wednesday to announce a comprehensive and ambitious plan for averting mass unemployment.

Because while it might be reasonable to see how consumers respond to the further lifting of lockdown before taking a decision on something like a VAT cut – which would be pointlessly costly if the issue isn’t demand – delaying decisions about investment in employment and skills could be catastrophic.

In a new report this week, produced jointly by Reform and the Learning and Work Institute, we estimate that around ten million people are potentially at risk of unemployment. Those at greatest risk are in areas that already had high unemployment, have low qualification levels and are currently in low paid work. In other words, they will be least resilient to losing their jobs. The result of inaction, even delayed action, will be a levelling down.

The Conservative manifesto pledged to undo the decade-long underinvestment in skills; to help workers “train and retrain for the jobs and industries of the future”.

This recession is unique for its sectoral nature, meaning a large number of workers will not only need to find new jobs, but to switch careers. But it is also unique in that the Government has a direct line to those most vulnerable to unemployment – the furlough scheme.

The Prime Minster should deliver on his manifesto promise with a bold offer to anyone on furlough, or in an at-risk sector like retail or hospitality. This should include universal entitlement to funding for a qualification, or modules of a qualification, up to and including level three, as well as online advice and support.

For those needing to change careers, which we estimate will be up to 200,000 people, the Government should provide a £5,000 learning account for accredited training. They should also receive a time-limited, means-tested maintenance grant to help mitigate wage drops as they start over in a new sector. Eligibility could be linked to an individual’s history of National Insurance contributions.

And to incentivise employers both to hire apprentices and career changers, and to pay living wages, the Government should allow firms to use a proportion of their apprenticeship levy to support wages, with an equivalent grant for SMEs.

On Wednesday, the Chancellor must show the same bold thinking that delivered the furlough scheme. Failure to act now could mean mass unemployment with its sky-high social and economic costs. That’s a legacy the Government should do everything to avoid.

Robert Halfon: Johnson delivers for the workers but Starmer could win back their votes

1 Jul

Robert Halfon is MP for Harlow, a former Conservative Party Deputy Chairman, Chair of the Education Select Committee and President of Conservative Workers and Trade Unionists.

Blue-Collar Boris

I think readers of ConservativeHome will know my columns well enough by now that when I want the Conservative Government to be better, I am not afraid to say it. But it is also important to dance a jig or two, when they get it right.

Yesterday’s speech by the Prime Minister was a blue-collar speech in tooth and claw. When he said that he would focus on the people’s priorities, he really meant it.

For communities like mine in Harlow, and no doubt those in and around the blue wall, there will be a sigh of relief that there is no return to austerity, that the NHS is King, that schools and colleges will be better funded and housing and infrastructure will be built across our land.

Above all, we now have an extraordinary and exciting offering to our young people – an opportunity guarantee, comprising a choice between an apprenticeship or a work placement. This is a real policy that could make a difference to winning back younger voters as well.

The reason why this Boris Johnson speech was so important was not just the significant policy content, but because it set the direction of travel for the Conservative administration. After a few rocky weeks seemingly being bogged down in the Coronavirus mire, the Prime Minister is back on the front foot, setting out a Tory Workers’ agenda, that millions of lower income workers not only relate to, but can also get behind.

They have been reminded of why they voted for us again. Of course, saying that we are going to ‘build, build, build’ is easier than the building itself, but now the course/trajectory/path has been set, it is up to the rest of the Government to start constructing our New Jerusalem.

Starmer unstuffed

Patrick O’Flynn was one of the early media forefathers (and proponents) of blue-collar conservatism, way back in the days when Notting Hill was regarded as the preferred venue of the Tory éminence grise – a little unlike Dudley, where Johnson was yesterday. So, he is someone worth reading up on or listening to.

However, his recent article for The Spectator entitled, ‘Starmer is stuffed, filled me with absolute horror, because his line of argument, if accepted, would instill a large dollop of complacency in every Conservative.

In O’Flynn’s view, Starmer’s history and background, his inability to develop blue-collar policy, the cultural wars and the Tories’ reputation for economic competency, means everything will be alright on the night.

If we, as Conservatives, believe the above to be true, that way disaster lies; not only will we lose our majority at worst, or have a hung parliament at best, but our historic red wall gains in the North will crumble away.

Let me set out a few reasons why:

First, Keir Starmer is radically de-Corbynising the Labour Party – almost by stealth and under the cover of coronavirus. Almost all the way through the Shadow frontbench, from PPS’ to the Shadow Cabinet, moderates are being promoted. If you look at the calibre of Labour MPs – like Shadow Business Minister, Lucy Powell, or Shadow Home Secretary, Nick Thomas Symonds – you know that the Labour leader is being serious when he wants to present an alternative Government. Meanwhile, the NEC and Labour General Secretary are passing into the hands of social democrats, rather than the far left.

Second, whilst Starmer may not have had his Clause IV with the sacking of Rebecca Long-Bailey, it is certainly a Clause 0.4. In one fell swoop, Starmer has shown the British public that he will not tolerate the anti-semitism that has so infected his party over the past few years – and given a pretty sure signal that he wants to enter the doors of 10 Downing Street.

The idea that the public will care about Starmer’s past record as Director of Public Prosecutions is as fanciful as voters being negatively influenced by Johnson going to Eton, or his early and controversial newspaper columns.

Third, never underestimate the power of Labour. Their message of helping the underdog and the poor is enduring, still popular and extremely potent. They are not going to sit back and let the Tories rule for eternity. The psephological evidence shows that public opinion is leaning closer and closer towards Starmer for Prime Minister.

The latest Opinium poll shows that Starmer is preferred to lead the country by 37 per cent of voters, compared with 35 per cent who back Johnson. While the Conservatives remain four points ahead of their opposition on 43 per cent to Labour’s 39 per cent, the gap has closed from over 20 per cent in February and early March, when Jeremy Corbyn was leader. Scaling the Tory wall is far from insurmountable.

Fourth, on policy: Just because Starmer is a ‘metropolitan’ does not mean that his policies will be ‘metropolitan’, too. His Policy Chief is Claire Ainsley, who wrote an important book, The New Working Class: How to Win Hearts, Minds and Votes.

If her views, alongside those of a more communitarian nature as proposed by thoughtful Labour thinkers like John Cruddas, MP for Dagenham (with whom Johnson’s former Political Secretary, my colleague Danny Kruger, is collaborating on big society policy development), or Maurice Glasman, then they could actually have an exciting message to the public, winning minds as well as hearts.

If Tories are busy painting flags on planes, or building Royal Yachts, or shooting ourselves in the foot as we are wont to do on a regular basis – whether it be on free school meals or the NHS surcharge – and Labour are focusing on the cost of living, skills and genuinely affordable housing, I think it is pretty clear voters are going to be looking at the Labour offering, once again.

Having said that, if we come up with more of the blue-collar narrative, I set out in the first part of this article, alongside significant tax cuts for the lower paid, then perhaps O’Flynn could be on to something.

I just wish he wouldn’t say it, nor any other right-thinking individual. Conservatives have to take the next few years as if we have a majority of one, and remember that the political left want the Tories gone, and will stop at nothing to kick them out of Downing Street.

Andy Street: Our blueprint setting out the economic ambitions of the West Midlands

30 Jun

Andy Street is Mayor of the West Midlands, and is a former Managing Director of John Lewis.

Last week saw the launch of a blueprint setting out the post-Coronavirus economic ambitions of the West Midlands. As a manufacturing heartland, where draftsmen drew up plans for everything from steam engines to Spitfires, blueprints are in our blood. They illuminate our history. This intentionally ambitious £3.2 billion business case draws a clear trajectory to our region’s future.

As Mayor of the West Midlands, it’s my job to attract as much investment as possible. Rishi Sunak’s bold and decisive actions – notably through the furlough scheme – have provided unprecedented economic support for jobs during lockdown. Now, demands on the public purse are high. All investment must be fully justified, diligently used and – crucially – deliver real results. Every penny counts.

Our region was the UK’s fastest growing outside the capital until Covid-19 struck, and as a hotbed of export, manufacturing, construction and professional services, we play a key role in the UK’s economic success. This new blueprint lays out a powerful business case for how continued investment can spark rapid and sustained recovery, not only for us here but for UK PLC.

Our ambition is deliberate because the stakes are high. Research suggests we could be hit harder than most by the lockdown. When coronavirus struck, the West Midlands was in a strong economic position, with record employment figures and productivity growth well ahead of the national rate. However, our economic mix – dependence on manufacturing and business tourism, as well as a significant contribution from universities – leaves us vulnerable.

By following the blueprint we have drawn up, the Government can demonstrate its commitment to ‘levelling-up’ by backing the people of the West Midlands to deliver.

We need to do everything we can to get back on our feet quickly and return to the levels of success we were enjoying before the outbreak hit. That means driving a rapid economic recovery, safeguarding more than 135,000 jobs while building thousands of new homes. It also means learning the lessons of the financial crash of 2008/09, and listening to business.

Investment is crucial. However, while we need significant investment from the Government – £3.2 billion over the next three years – this is broadly in line with the £2.7 billion investment we have secured since 2017, which supported strong economic success here.

Our business plan is to build on our success and on the investment we have already attracted from Government, while leveraging much more private and public sector investment locally, including from our universities.

The blueprint sets out a business case for investments, while outlining the economic benefits they would deliver. For example, it directly supports our automotive sector by harnessing clean technology and electrification. A major investment package, including £250 million towards a Gigafactory producing state-of-the-art batteries, will unlock 51,700 green jobs.

The building of HS2, next year’s Coventry City of Culture festivities and the Birmingham 2022 Commonwealth Games present opportunities to create jobs for local people. By accelerating major infrastructure investment and supporting the recovery of the tourism and cultural sector we can unlock 33,000 jobs.

Then there is the West Midlands’ growing reputation as a hotbed for health research. By investing in healthcare innovation we can protect 3,200 jobs, while improving the health of our population.

Improving transport, housing and digital infrastructure will play a key part in a rapid recovery, while laying the foundations for future economic strength. We can build better transport and digital links to drive productivity and create thousands of jobs in construction. Schemes include extending rail, metro and bus routes, with cash for enhanced digital connectivity and to accelerate fibre connectivity in deprived areas. Reopening long-closed railway stations will better connect people to employment opportunities, attract investment into once-isolated areas and improve productivity.

The West Midlands has pioneered the regeneration of brownfield sites to tackle the housing crisis, while protecting the environment. We even have our own regional definition of ‘affordable housing’ applied at planning level by the West Midlands Combined Authority. We want to build 35,000 new homes – 15,000 of which will be affordable – with a focus on housing key workers. Plans include using a £200m investment package to regenerate derelict eyesores and £24 million for a new National Brownfield Institute in Wolverhampton, which will be a centre of excellence for land reclamation.

Investment to equip people with the skills needed for the future aims to help get them back into work. This includes helping 38,400 young people obtain apprenticeships and work experience, retraining 20,000 workers for in-demand sectors such as health and social care, logistics and business services, and upskilling 24,000 for jobs for the future.

Finally, we want to back the region’s businesses with support schemes – including helping them navigate their way through the post-lockdown world – creating or safeguarding 43,900 jobs.

This ambitious business case is based on our region’s experiences not only of recovering from the last downturn, but on the successes of the last three years. The blueprint has been developed as a team effort between the region’s local enterprise partnerships, universities, business groups and local authorities.  Crucially, some of our biggest employers have also shared their insights about how the region can play its part in securing a strong national recovery, putting central investment to good use.

For the UK to fully recover, all of its regions must recover too – creating a stronger country with a more robust, balanced economy.