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The North of England is home to 15 million people1 and over one million private sector

businesses.2 If the North were a country, it would be one of the most significant economies

in Europe, similar in size to Belgium3.

Leaving the European Union provides a unique opportunity for the North to find a new

powerful role in global Britain. The Governments industrial strategy offers us the opportunity

to make long-term decisions about our economic future here in the North, increasing

productivity and driving growth.

Entrepreneurs and business leaders are passionate about ensuring the North has a growing

economy, with a strong private sector and a highly skilled population able to make the most

of the great opportunities that a new global Britain has to offer. If we can deliver on growth

and skills in the North, the whole of the UK will benefit as was the case in the past.

As the engine of the industrial revolution, the North has a long history of driving national

growth. Today the North has over one million private sector businesses. The Norths economy

was worth 304 billion in 2014, accounting for 19% of total UK output. 4

1
ONS, Population Estimates for UK, England and Wales, Scotland and Northern Ireland: mid-2015, June 2016,
https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/bull
etins/annualmidyearpopulationestimates/latest
2
BEIS, Business Population Estimates 2016, Department for Business, October 2016,
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/559219/bpe_2016_statistica
l_release.pdf
3
HM GOV Northern Powerhouse, http://northernpowerhouse.gov.uk
4
ONS, Regional gross value added (income approach), UK: 1997 to 2015, December 2015,
https://www.ons.gov.uk/economy/grossvalueaddedgva/bulletins/regionalgrossvalueaddedincomeapproach/p
reviousReleases
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The North produces almost 20% of UK goods exports 5, and is connected to the rest of the

world through seven international airports and 12 major ports. There are over 20 universities

in the North, of which four are ranked in the top 100 universities globally 6.

Yet there is much untapped potential.

The Governments commitment to a modern Industrial Strategy provides a real opportunity

to help unlock the Norths economic potential and tackle the deep issues, such as relatively

poor educational outcomes, that have held the North back for too long.

There is, however, one important point to note which is fundamental to our response; The

North is not, and never should be, short-hand for Great Manchester. The North is the

individual towns, cities and villages which make up the unique landscapes of Cumbria,

Yorkshire and the Humber, the North West and the North East of England.

There are many lessons to be drawn from the result of the EU Referendum. One of the most

important to note was the divergence of the wider North from the major Northern cities.

It is a fact that almost all of the areas that voted Remain were clustered around metropolitan

University towns and cities; Liverpool, Manchester, Leeds and Newcastle. Manchester voted

60 per cent to Remain. Yet right across the North West, North East and Yorkshire and

Humber, it was one of just 11 areas to vote Remain - out of 1257.

5
HMRC, Regional Trade Statistics, September 2016,
https://www.uktradeinfo.com/Statistics/RTS/RTS%20Releases/RTS_Q2_2016.pdf
6
QS World University Ranking 2016-17, https://www.topuniversities.com/university-rankings/world-
university-rankings/2016
7
Electoral Commission, EU Referendum Results 2016, June 2016,
http://www.electoralcommission.org.uk/find-information-by-subject/elections-and-referendums/past-
elections-and-referendums/eu-referendum/electorate-and-count-information
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This highlights the long term split between the Norths urban cities and the greater North,

which has faced slower job growth and stagnating wages simultaneously, if not causally,

with Britain becoming a member of the European Economic Community in 1973.

The decline of the North Easts once industrial might, illustrates the pattern. Coal mining in

County Durham peaked as early as the 1920s, when more than 170,000 men were employed

as miners8. In the two decades from 1950-1970 the decline accelerated with around a

hundred North East coal mines closing, the industry finally all but dying out by the late 1980s.

Shipyard closures followed a similar pattern, with early decline toward the end of the late

1920s, with the closure of Richardson Dock in Stockton in 1925 and Palmers of Jarrow and

Hebburn along with Priestman's of Sunderland in 1933. The industrys existential decline

came some decades later as six shipyards closed in the 1960s, followed by five in the

1970s. By the late 1980s just one shipyard remained in the North East.

Yet for too long we continued to educate people in the same way, in the same trades and

traditions, preparing future generations for roles in which demand was already collapsing, in

part helping to ensure a generational legacy of unemployment and skills deficits across the

region.

That generational legacy perhaps helps in some part to explain why in last years referendum

the North voted to Leave, by a margin of almost 1 million votes. The voters of Hartlepool,

Doncaster, Carlisle, Blackpool and Rochdale were not just voting to Leave, but voting for

change long overdue change. With the UK leaving the European Union, there is an

opportunity for the Government to bring about positive change for the North. We have a

chance to address the skills shortage in the North by developing new innovative approaches

8
Durham County Record Office, http://www.durhamrecordoffice.org.uk/article/10560/Coal-Mining-and-
Durham-Collieries
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to education and life-long training, ensuring that people have the skills they need, for the

jobs that exist in their local area.

A UBS regional policy report similarly highlighted deep-seated imbalances dating as far

as the late Victorian era, with policy initiatives in the intervening period barely acting to

offset the natural drift of business activity towards the south9.

Outside of the Norths major cities, the period corresponding to the UKs membership of the

EU has left the wider North far behind London and the South East in terms of wages, skills

and growth. Indeed, the gap in Gross Value Added between the North and the rest of the UK

continues to remain stubbornly wide and growing.

On a base of UK GVA per head of 100, the figure for the North East is 74, for Yorkshire and the

Humber 80.7, the North West 85.4, while the figure for the South East is 109.8, and London

172.110.

Those numbers are perhaps all too familiar to policy makers. However they illustrate just how

important the Governments ambition to build a modern Industrial Strategy is. For too long

the North has been left behind. For too long the UK has not been a country that works for

everyone.

9
Financial Times, North of Englands economy undermined by entrenched weaknesses, March 2016,
https://www.ft.com/content/d4bcaaba-dbbe-11e5-98fd-06d75973fe09
10
ONS, Regional gross value added (income approach), UK: 1997 to 2015, December 2015,
https://www.ons.gov.uk/economy/grossvalueaddedgva/bulletins/regionalgrossvalueaddedincomeapproach/p
reviousReleases
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There are many good ideas in the draft Industrial Strategy, however, our focus is on

considering the impact it can have on education and skills, one of the key inequalities in the

UK. There are huge opportunities that a Global Britain can take advantage of, such as the

growth in digitalisation and advanced manufacturing, along with new markets for

pharmaceutical and life sciences. We must continue to encourage further self-employment,

building the growing gig economy into one of entrepreneurship and growing small

businesses. If the North is ever to do better, fundamentally we need our people to have better

skills so that they can compete with the rest of the world. Our young people are not less

intelligent than those in the south and opportunities are out there - but we need to act now

to address the education and skills gap that has developed in recent decades.

Our response focuses on how a bold and ambitious Industrial Strategy can connect schools

and skills, to business and enterprise, to truly unlock the potential of the next generation.

There is real potential for business to further contribute to improving education. If we do not

act, then we face deepening social inequalities between the North and the South, long term

business growth in the North weakened, and most importantly we risk losing the untapped

potential of a generation to play a leading role in the opportunities offered up in a post-Brexit

UK.

This is a unique opportunity for a new Skills Contract between business and the educational

sector to transform learning in this country. A unique opportunity that will help ensure the

North is at the beating heart of tomorrow's global Britain.

For the North to fulfil the opportunities that a global Britain could bring, the Governments

Industrial Strategy must be built on a new deal, a new deal between business and the

government, schools and enterprise, teachers and business leaders. A solid commitment to

equip both today and tomorrows workforce with world beating skills. A new Skills Contract

to use the power of innovation and enterprise to transform learning.

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Our society simply cannot afford to have young people growing up without the skills and

knowledge to fulfil their potential. Business can no longer afford it either. Currently, the UK

is plugging its skills gaps with immigrant labour from the European Union. These jobs will

only go to British workers if we focus on upgrading skills and new innovative approaches to

learning. The challenges and opportunities ahead, with new markets and new opportunities

for growth, mean as a country we need an engaged and highly skilled workforce more than

ever.

The UK can rightly be proud that more people than ever go to university11, and more so than

the OECD average12. Yet still we fail to equip many young people with the skills they need to

be able to secure a good job, with more people than the OECD average also having low levels

of literacy and numeracy13. That divide is felt most acutely here in the North.

According to a report by the Childrens Commissioner for England, young people in London

and the South East are 57% more likely to get into universities ranked among the top third

than young people from the North14. That divide is a symptom, rather than a cause, of the

educational divide in the UK. The North East of England for example has some of the best

primary schools in the country15, yet coupled with the lowest level of adult employment16.

That attainment gap is laid bare in Redcar and Cleveland on Teesside. 95 per cent of primary

11
University & College Union (UCU) Report, March 2016, https://www.ucu.org.uk/article/8130/UCU-names-
and-shames-colleges-and-universities-that-hold-down-womens-pay?list=1676
12
OECD, Education at a Glance, September 2016, http://www.oecd-ilibrary.org/education/education-at-a-
glance_19991487
13
Kuczera, M. OECD Skills studies building skills for all: a review of England, February 2016,
https://www.oecd.org/unitedkingdom/building-skills-for-all-review-of-england.pdf
14
Childrens Commissioner, Growing Up North, Time to leave the North-South divide behind, December 2016,
http://www.childrenscommissioner.gov.uk/publications/GUN
15
Ofsted, SCHOOLS NorthEast Summit 2015, October 2015,
https://www.gov.uk/government/speeches/schools-northeast-summit-2015
16
ONS, Regional labour market: March 2016,
https://www.ons.gov.uk/releases/regionallabourmarketstatisticsmarch2016
 13

schools there are deemed good or outstanding by Ofsted. Yet Redcar and Cleveland is in

the bottom 20 of the 149 areas in England when it comes to the progress a pupil makes from

the end of primary school to the end of secondary school. 17

The former Head of Ofsted, Sir Michael Wilshaw noted in his most recent report Last year, I

highlighted the disproportionate number of secondary schools that are less than good in the

North and Midlands, compared with the South and East of England. This year, the gap has

widened slightly. More than a quarter of secondaries in the North and Midlands are still not

good enough. This year, there are 13 local authority areas where every secondary school

inspected is either good or outstanding, and all are in London or the South East. However,

there are 10 local authorities with 40% or more of pupils who are in secondary schools that

are less than good, and where attainment and progress is below the national level on the key

accountability measures18.

Six out of ten of those failing areas highlighted by Sir Michael Wilshaw are in the North;

Blackpool, Bradford, Doncaster, Knowsley, Liverpool and Northumberland.

Five years ago the North West was identified as one of the stronger areas, but improvement

has stalled. According to Ofsted the proportion of secondary schools that are good or

outstanding has increased by just 3 percentage points in the North West since 2011. Over the

same period the increase nationally was 13 percentage points. To further illustrate the

17
Ofsted, Annual Report 2015/16: Education, Early years & Skills, December 2016,
https://www.gov.uk/government/collections/ofsted-annual-report-201516
18
Ofsted, Annual Report 2015/16, December 2016, https://www.gov.uk/government/collections/ofsted-
annual-report-201516
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point, Ofsted notes 5 in 10 secondary schools in Liverpool are less than good, compared to

just 1 in 10 in inner London19.

The skills gap in the North goes beyond schools standards and into both long term outcomes

and technical skills.

With that in mind the Industrial Strategy Green Papers commitment to introducing a

proper system of technical education20 is a welcome one. The further announcements in

the Budget for a new T-Level system21, overhauling how technical education is taught and

valued, is a step in the right direction if we are to improve the Norths levels of productivity,

which currently lags behind the rest of the UK22.

Putting technical courses on an equal footing with academic work, increasing the number

of hours students train by 50% and replacing the current 13,000 qualifications with 15, will

help make a complicated system easier for pupils and parents to navigate.

The further announcement that each student studying for a technical qualification will do a

three-month work placement as part of their course23 is one we support, although there is

19
Ofsted, Annual Report 2015/16, December 2016, https://www.gov.uk/government/collections/ofsted-
annual-report-201516
20
BEIS, Building our Industrial Strategy: Green Paper, January 2017,
https://www.gov.uk/government/consultations/building-our-industrial-strategy
21 HM Treasury, Spring Budget, March 2017, https://www.gov.uk/government/publications/spring-budget-

2017-documents
22
ONS, Regional and sub-regional productivity in the UK: Jan 2017,
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/labourproductivity/articles/regionaland
subregionalproductivityintheuk/jan2017
23
HM Treasury, Spring Budget, March 2017, https://www.gov.uk/government/publications/spring-budget-
2017-documents
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room here for further ambition. We would like to see no student, studying for either

academic or technical qualifications, leaving school without the opportunity of three-

months real, high quality work experience. The current system of 2 weeks, often random

work experience fails our young people.

The official website for the Tyne and Wear Work Experience programme makes that case

inadvertently clear. Is Work Experience real work? Yes - and no. It's not about trying out

career choices, but more about finding out about working life and work skills in general 24.

If work experience is not about real work or trying out career choices, then in truth it offers

pupils little real long term value. Work experience organised internally by schools is all too

often disconnected from the real world of enterprise and private sector opportunities that

surround those schools the very jobs and growing industries which those young people will

all too soon be looking to move into.

To be truly valued, as well as being extended, work experience must also be given an empiric

basis a standard to be worked towards, rather than a box to be ticked. To that end we

recommend the introduction of a new place based Skills Standard so that every young

person is genuinely ready for the world of work around them. Schools would encourage all

young people from the age of 11 to work through a clear programme of careers advice,

training, mentoring, and work experience, (informed by LEPs and the modern Industrial

Strategy), to earn independent accreditation as being Work Ready having met, for example,

the North East Skills Standard or Greater Manchester Skills Standard.

24
Work Experience, Tyne & Wear, https://work-experience-tw.co.uk
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We suggest there could be three levels of the new Skills Standard which would be regularly

agreed with employers and LEPs, and which when successfully completed could lead to a

Bronze, Silver or Gold Skills Standard for every young person taking part.

Activities for each level of the Skills Standard would be designed to fit around academic

study and social activities, but could well take place beyond the normal school hours,

possibly as part of the National Citizenship Service.

The programme would not only finally give confidence to employers that work place skills

were being addressed, but even more importantly it would instil in young people a culture

of life long skills development in what will become an ever-changing work place

environment over their lifetime.

The Skills Standard would be a key opportunity to leverage the skills of large companies

employees bases.

A place-led Industrial Strategy is also an opportunity to establish a real link between local

business and local schools. Local business communities can support the transformational

efforts to improve careers advice such as the Enterprise Advisor programme, trailed by the

North East LEP.

We would like to see an Enterprise Advisor offered to every secondary school - helping every

school to become focussed on pupils careers prospects.

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Currently, young people in schools and beyond do not interact enough with the world of

business, with research suggesting just 15% of 19-24 year olds saying theyve engaged with

employers on three or more occasions (Mann and Percy, 2013)25.

Such Enterprise Advisers could work closely with school leadership teams to develop their

career service with a focus on growing business sectors in their region and addressing skills

gaps by working with the business community - joining up schools directly with employers.

In the long term this would help change the culture within schools, prepare students for the

world of work, and become a fundamental part of the educational experience.

The Industrial Strategys commitment to explore and further encourage the uptake of STEM

subjects is also welcome, but we would like to see further specific measures. We would be

keen to see LEPs develop place based bursary schemes for STEM (Science, Technology,

Engineering and Maths) subjects, with shifting emphasis placed on the opportunity in each

locality.

For example, the North East has the highest level of youth unemployment in the country -

over 20% of those between the ages of 19 and 2426. Yet at the same time the North East has

major skills shortages for example, there are more than 2,000 vacancies in the technology

sector in the region27. For example a devolved place based bursary scheme could be

developed for North East students in the first year of a post-16 technology or Maths.

25
Anthony Mann & Christian Percy, Employer engagement in British secondary education: wage earning
outcomes experienced by young adults, February 2013,
http://www.tandfonline.com/doi/abs/10.1080/13639080.2013.769671
26
ONS, Regional labour market, March 2016,
https://www.ons.gov.uk/releases/regionallabourmarketstatisticsmarch2016
27
Chamber statement on employment statistics, NEEC, April 2017,
https://www.neechamber.co.uk/news/chamber/chamber-statement-on-employment-statistics
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We welcome the 320m extra funding in the Budget28 for new free schools and specialist

institutions. We note that half of new free schools are in deprived parts of the country29, such

as Dixons Trinity Academy in Bradford, currently rated Outstanding by Ofsted.

According to the most recent Ofsted report at the start of Year 7, the attainment of pupils

known to be eligible for free school meals was two terms behind that of their peers in both

English and Maths. After only one year at Dixons Trinity Academy, this gap had been

eradicated in English and is reducing in Maths30.

We welcome this choice in educational models and note that to date, 29 per cent of free

schools have been ranked Outstanding, by Ofsted, more than the national average 31.

The Exeter Maths School model for example has real potential to transform Maths education,

in particular for the North. Research in the US suggests that by 2020, 96% of jobs will require

critical thinking skills and 70% will require Maths and computer knowledge32. We further

note the Exeter Maths School is the second best in the South West region for overall results.

It is also rated the top state school in the South West for progress overall, as well as in Maths33.

Its innovative use of bursary grants to ensure that pupils from lower-income families were

not excluded from applying is something we especially applaud.

28
HM Treasury, Spring Budget, March 2017, https://www.gov.uk/government/publications/spring-budget-
2017-documents
29
DfE, Free schools drive social justice: Nicky Morgan, May 2015, https://www.gov.uk/government/news/free-
schools-drive-social-justice-nicky-morgan
30
Dixons Trinity Academy, Ofsted Report, January 2014,
https://reports.ofsted.gov.uk/provider/files/2354585/urn/138251.pdf
31
DfE, More than 130 new free schools to create more good places, April 2017,
https://www.gov.uk/government/news/more-than-130-new-free-schools-to-create-more-good-places
32
Carnevale, Smith & Strohl, Recovery 2020: Job Growth and Education Requirements through 2020;
Georgetown University, June 2013, https://cew.georgetown.edu/cew-reports/recovery-job-growth-and-
education-requirements-through-2020/
33
Exeter Mathematics School, Results 2016, August 2016,
https://www.exetermathematicsschool.ac.uk/results/
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We would also highlight that the Exeter Maths School serves a vast catchment area. In the

North this could allow students outside of central city locations, including in rural areas to

access high quality education.

We would encourage the Industrial Strategy to focus on harnessing the power of innovation

in education, especially in relation to growing industrial sectors, such as the planned National

College of Cybersecurity in Buckinghamshire. We would also call for similarly innovative

solutions in the North to take advantage of the rapid expansion of the digital sector in the

North East and North West.

We note that in many institutions where vocational education is working there is a large

employer standing behind it. The JCB Academy is a superb example of businesses helping

provide top quality education in a vocational environment.

The JCB Academy in Staffordshire, sponsored by JCB and, alongside other businesses

including Bentley Motors, Network Rail and Rolls-Royce have worked together to develop

their unique curriculum. The academy provides a world class education and is a real model

for other businesses to engage directly with innovative educational institutions and models.

There is huge potential for such new innovative education institutions in the North, and we

would urge the Industrial Strategy to use place to help guide future free schools and

specialist institutions towards key growth sectors.

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The Industrial Strategy must also address some of the key drivers that prevent the North, and

the wider UK, developing truly world leading vocational education. The system is built with

inherent disadvantages for young people who wish to exercise choice.

We passionately support the principles behind UTCs and Studio Schools to ensure young

people have access to genuine vocational education choices regardless of background.

However, there is no denying they have faced real difficulties, such as high closure rates and

difficulties recruiting pupils. Just this month the 15th Studio School closed, leaving just 35

open across the country.

If the Industrial Strategy is designed to truly deliver joined up thinking; there are few better

examples of disjointed thinking than the way the Governments performance measures

compare Studio Schools and UTCs to traditional schools.

Young people can only join a UTC or Studio School at the age of 14, rather than at 11 when

the majority of pupils move between primary and secondary. Firstly, that means those

alternative models of education have far less time to influence students progress scores,

which are measured over the period of five years. Just as importantly some of the technical

and vocational subjects that UTCs offer, dont even receive scores in the Progress 8 measure.

Despite their success in driving down NEETs, UTCs and Studio Schools continue to do badly

in the Progress 8 measure confusing parents and pupils about their viability as an

educational pathway. For example, a UTC may not offer humanities as a subject, but will offer

relevant Level 2 courses/BTEC courses however the Progress 8 measure will therefore not

give an accurate picture of their real progress. A school system of choice can only work when

those making the choices have the knowledge and accurate facts to do so. Specialist
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vocational-led institutions should not be simplistically measured in the same way as

traditional schools. We note that 97% of students leaving UTCs have stayed in education or

started an apprenticeship and just 0.5% were NEET (not in employment, education or

training)34.

Where UTCs have had to close due to financial pressures, this is generally due to low pupil

recruitment. When the coalition government brought forward UTCs and Studio Schools, it

acknowledged the perennial difficulty in pin pointing when dedicated technical education

should begin. 11 years old was felt to be too soon and 16 years old too late.

On the continent, there is a clear difference between upper and lower secondary education

at 14 years old. In Austria for example, the National Curriculum ends at 14 and there are

separate 14-18 colleges covering a host of areas including technical and practical training.

Austria lays claim to the lowest youth unemployment rate in the EU35. However, there is little

culture of educational transfer at 14 in British state schools. Not only that but the incentives

in the system work against the very principles. Academies, and especially LA-maintained

schools, have no incentive to help other institutions recruit at 14.

In fact, many schools actively resist institutions which offer pupils a choice to go on another

course. That resistance is in some cases ideological, but more importantly it is financial, if a

pupil chooses to move, it is a loss of money to the school of around 5,000 per pupil. With

education funding facing an inevitable tightening, and career advice widely acknowledged

as poor, choice is being institutionally squeezed out of the system.

34
University Technical College Students 2016 Destinations,
www.utcolleges.org/uploads/uploads/.../utcdestinations_a4flyer_nov16_webready.pdf
35
Eurostat Unemployment Statistics, February 2017, http://ec.europa.eu/eurostat/statistics-
explained/index.php/Unemployment_statistics
 25

We do welcome the new legal obligation on Local Authorities to write to all parents with

children in Year 9 to provide information about local UTCs and other schools that recruit at

14. However, we believe that for a modern Industrial Strategy to have a real impact on skills,

it is imperative the issue of choice fixed at 14 years old, and the incentives in the system

against freedom of choice for vocational education must be addressed.

We support the Governments introduction of the Apprenticeship Levy, to help fulfil the

ambition to get three million new apprentices started by 2020 36. More importantly we

welcome the Governments long term commitment to apprenticeships, which the evidence

shows deliver long term results for learners.

The work of the newly announced independent Institute for Apprenticeships, [an executive

non-departmental public body, sponsored by the Department for Education, and

responsible for ensuring high-quality apprenticeship standards], will play a vital role in

vetting new apprenticeship programmes ensuring they are relevant to the workplace and

meet core standards.

It is important the Institute for Apprenticeships work is informed by the Industrial Strategy

to deliver tangible, long term success with an increase in apprenticeships focussed on the IT

and digital sectors so apprentices develop necessary skills to succeed.

36
BIS, Apprenticeships (in England): vision for 2020, December 2015,
https://www.gov.uk/government/publications/apprenticeships-in-england-vision-for-2020
26
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Education and skills however, must go beyond school years.

The Green Papers commitment to explore ambitious new approaches to encouraging

lifelong learning37 is welcome and will benefit from the development of more specific

proposals on adult learning.

For the North to truly embrace the opportunities of a new global Britain, its workforce must

be able to gain relevant skills quickly in a rapidly changing economy.

As highlighted at our Policy North Business Roundtable event in Newcastle upon Tyne,

peoples ability to access training courses to upskill is out of step with the speed of change in

the work place38. We would encourage the Government to consider a one-stop online market

place of courses and training providers, an Online Skills Bank accessible to all. Importantly

this should include training providers benchmarked against one another, encouraging

switching and private sector comparison sites to develop in the market.

Such a system should also map clear pathways for people to be able to keep pace with

industry needs on a local level, allowing them to become armed with relevant skills for their

region or sector. To that end, the Green Papers suggestion that the government will take

further actions to address differences in skill levels between different areas 39 is to be

welcomed. The training pathways should be informed by industry to quickly identify skills

gaps and future skills needs with a clear reference to place.

37
BEIS, Building our Industrial Strategy: Green Paper, January 2017,
https://www.gov.uk/government/consultations/building-our-industrial-strategy
38
Newcastle Chronicle, February 2017, http://www.chroniclelive.co.uk/news/north-east-news/north-east-
business-leaders-politicians-12617044
39 BEIS, Building our Industrial Strategy: Green Paper, January 2017,

https://www.gov.uk/government/consultations/building-our-industrial-strategy
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We would also encourage devolved bodies to offer a Career MOT to help signpost those in

need of retraining or further education later in their careers. The Career MOT could ensure

that volunteering, work experience, upgrading basic skills and mentoring are easier to access

for those seeking retraining, so that we do not risk entrenching unemployment or under-

utilising existing human capital in the workforce.

Further, we would urge the Government and devolved bodies to consider the use of personal

budgets to encourage people to upskill and train.

We discussed the Skills Future Credit system currently being rolled out40 in Singapore with

Sim Ann, the Singapore Trade Minister on her recent visit to the UK. From next year people

will be given personal budgets to spend on education and training courses provided by

Institutes of Higher Learning and accredited education and training providers.

We note the OECDs estimate that 9 million working-age adults in England have low literacy

and/or numeracy skills41, an acute problem in the North of England especially.

As part of the development of the Industrial Strategy we would welcome consideration from

the government for similar innovations here in the UK to encourage employees

to continue learning after entering the workforce and where the credit can be used for short

programmes to assist them in what will be the rapidly evolving careers of the future.

40
HM Treasury, Singapore Government Budget, March 2015,
http://www.singaporebudget.gov.sg/budget_2015/home.aspx
41
Kuczera, M. OECD Skills studies building skills for all: a review of England, February 2016,
https://www.oecd.org/unitedkingdom/building-skills-for-all-review-of-england.pdf
29
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According to the Future of Jobs report from the World Economic Forum By 2020, more

than one-third of workers will need skills they dont now have. 42

That rapidly changing nature of the future UK economy was further highlighted to us by Sir

John Hall, who was particularly keen to see the Industrial Strategy tackle not just the

challenges of today, but those of tomorrow.

The existential failure of 1970s industrial strategies lay in their protectionist instincts - the

emphasis was purely on maintaining existing industries and, worse, protecting those

industries dominant companies. This new modern Industrial Strategy must be about

generating an entrepreneurial environment for growing business to expand, for workers to

develop new skills, and for new disruptive companies to be born in a new industrial

revolution.

The North of England knows better than most what it is like to be at the centre of an

industrial revolution. More than 200 years ago the North of England powered the worlds first

industrial revolution, great engineers like George Stephenson developing new engines driven

by coal, making new goods and transporting them right across the globe.

However the challenge and opportunities of the Fourth Industrial Revolution will be very

different. There is a real need for the Industrial Strategy to help the UK embrace ever

increasing digitalisation and automation and therefore we welcome the Green Papers

42
World Economic Forum, The Future of Jobs Employment, Skills and Workforce Strategy for the Fourth
Industrial Revolution, January 2016, http://reports.weforum.org/future-of-jobs-2016/
 31

commitment to a review of industrial digitalisation, alongside potential funding for

sciences, automation, and technological innovation.

In this report, we have considered case studies of companies such as the Reece Group, who

like many others are making a strong commitment to improving education and skills.

Indeed, further research from the CBI suggests that 8 in 10 businesses have some link with at

least one school or college43.

However, if we are to secure the skills revolution we so desperately need to meet the

challenges of the Fourth Industrial revolution, and the opportunities of a new global Britain

then the work between business and education institutions must go beyond work

experience and careers advice.

As part of the Industrial Strategy the Government must work with business to help build

more strategic links between education, training, and skills with business and enterprise. By

working collaboratively to assess need and outcomes, investment and innovations in

education by businesses and entrepreneurs can have a greater impact, be better

coordinated, and best practice can be shared as quickly as possible

We strongly recommend that as part of the Industrial Strategy, support is given to the idea

of creating an independent. business-led institute to connect enterprise and the skills sector.

43
CBI & The Royal Society, Making education your business: A practical guide to supporting STEM teaching
in schools and colleges, May 2016, https://royalsociety.org/topics-policy/publications/2016/making-
education-your-business/
 32

With a clear focus on assisting the private sector in their innovative activities in the education

and skills sector, alongside helping to spread best practice across the UK and beyond.

The institute would take a powerful new role in encouraging companies to invest in

education to promote economic growth, encourage innovation in the education and skills

sector, share sector best practice, develop business led leadership within the sector and

advise on the future place-based skills required by employees in line with the Industrial

Strategy.

The institute should in our view be guided by four core principles:

1. Education should equip young people with skills and activities needed to excel in the

world of tomorrow. For example, encouraging independence, creativity

entrepreneurship and technological skills to stay competitive in the global economy.

2. Businesses should invest in training and education opportunities for their prospective

workforce in their local communities. For example, fostering a culture change so that

business partnering with local schools should no longer be purely as seen as a matter

of corporate social responsibility, but instead a long term strategic business

investment.

3. Employees and existing workforces present a huge untapped resource for advancing

social issues such as education. For example, encouraging and recognising

businesses to actively support employees taking governor roles with schools or

academy trusts and utilising internal staff skills to benefit educational institutions.

4. Businesses have a financial and social responsibility to invest in training and

development of their existing employees. For example, investing in digital training for

low-skilled workers will help to future proof long-term business operations and

creates pathways to new internal job opportunities.

 33

We began this response with a warning from the past that failing to equip future generations

with the skills to face the challenges of tomorrow, rather than the challenges of yesterday,

had helped slow the Norths economic activity for decades.

By strategically joining up business and skills, the Industrial Strategy has incredible potential

to ensure the Norths workforce of tomorrow have the skills and expertise to play a leading

role in the technology of tomorrow; from artificial intelligence, the internet of things,

advanced robotics, drones, driverless cars, 3D printing to nanotechnology.

Our key recommendation for a new Skills Contract between business and the learning and

skills sector, should be built on the following key proposals we have outlined above:

1. A revolution in Work Experience for every pupil

2. A new place based modern Skills Standard for every pupil

3. A new generation of business-led Career Advice

4. A bursary scheme directed at future core skills such as STEM

5. More free schools and greater choice of educational models such as Maths Schools

6. Expanding high quality apprenticeships and technical courses

7. An "Online Skills Bank to create a comparison market place of courses and training

providers

8. A Career MOT to actively encourage lifelong learning

9. Establishing an institute to drive forward the link between business and skills

If the Industrial Strategy can succeed in joining up business and skills with a collaborative

approach to the challenges and opportunities of the future, then the Norths, and the wider

UKs potential will be bound only by the imagination of tomorrows entrepreneurs.

34
 35

Appendix 1:

Studio West School

The Studio School model is a new concept in education, which seeks to address the growing
gap between the skills and knowledge that young people require to succeed and those that
the current education system provides. The Studio Schools' model has been developed
through extensive research and consultation with employers, education experts, and young
people, and incorporate best practice from the UK and around the world. At the heart of the
vision is the insight that a bold new approach to learning can play a central role in tackling
youth disengagement and equipping young people with the skills they need to succeed in
life and work.

Studio Schools approach to learning includes teaching through enterprise projects and real
work. This approach ensures students' learning is rooted in the real world and helps them to
develop the skills they need to flourish in life - such as independent thought, responsibility,
team work and communication skills.

Studio Schools are designed for 14-19 year olds of all abilities and are generally small schools
for up to 300 students. The schools are open all year and a have a 9-5 working day, so they
feel more like a workplace than a school. Students work as employees in local businesses
and, crucially, students over sixteen earn a wage. Students in Years 10 and 11 participate in
four hours of work experience each week, and students in Years 12 and 13 spend two days per
week in work. There is significant evidence that this direct, hands on experience better
prepares young people for life and work44.

These essential elements provide a framework for all Studio Schools and are built upon by
individual schools who tailor the model to meet the needs of their local community and local
labour market. Like traditional schools, Studio Schools teach the National Curriculum and
offer key academic and vocational qualifications. The qualifications offered by individual
schools vary depending on local circumstances, however all deliver qualifications at Level 2
and above, including core GCSEs in English, Maths and Science. This would mean that new
Studio Schools in the North could tailor the qualifications they offer to ensure that students
gained work experience, skills and qualifications that would suit opportunities available to
them.

44 Studio West, http://www.studiowestnewcastle.com

 36

Studio Schools work closely with local employers to offer students paid work placements
linked directly to employment opportunities in the local area. This benefits both students
and local employers. If established in the North, employers would be able to help shape the
curriculum so that students had the skills necessary to be successful in the working world
and students would gain skills, independence and an understanding of the benefits of
working in the North.

Students gain a broad range of employability and life skills through the CREATE skills
framework, and have the option to go on to university, further training, and into employment.
CREATE is comprised of a wide range of skills and stands for Communication, Relating to
people, Enterprise, Applied skills, Thinking skills and Emotional intelligence. CREATE is
grounded in a wide range of skills typologies and has been developed specifically for Studio
Schools in order to equip young people with the key skills that they need to flourish.

Studio West is an enterprise and innovation campus in Newcastle-Upon-Tyne based on the

Studio School national model. Studio West offers its pupils unique learning opportunities
through immersion into real-life, hands-on projects. Through this method, students not only
pick up core skills, such as Maths, English and Science, but also learn and practice the softer,
but equally important, skills employers are looking for.

At Studio West, students learn in the real world through working in teams on projects
designed to reflect real-life situations. Students benefit from weekly work placements, which
means they develop the employability skills needed to succeed in life and work.

All students are assigned a personal coach who they meet with fortnightly on a one-to-one
basis to help develop a personalised learning plan. Students have the ability to tailor their
studies to meet their individual needs and aspirations. The small school environments
supports this personalisation of the curriculum so that every young person can access the
tailored support that they need.

The Studio Schools model means that students benefit from a curriculum that prepares
them for the working world. Adopting the Studio Schools model in the North will help local
businesses as schools will produce students with the ability to think independently and
succeed in the working world. The model will also mean that the skills and productivity gap
in the North will be dealt with, benefitting the region as a whole.
37
 38

Appendix 2: Responsive Engineering

Responsive Engineering, a registered company that is part of the Reece Group, has teamed
up with Newcastle College to help employees gain a head start in their careers.

The Foundation Degree in Mechanical Manufacturing Engineering (FdEng), which was

specially designed and tailored for Responsive Engineering, is designed to equip participants
with a wide-range of industry skills such as project management, mechanical Science and
Maths. The two-year course was designed to ensure that participants would meet the needs
of modern industry. Foundation Degrees are designed in collaboration with industry to
ensure local and wider higher education and training needs are met. Foundation Degrees
are set at QCF level 5, the equivalent to the first two years of a Bachelors Degree, and allow
participants to progress straight on to top-up degrees - the final year of a Bachelors Degree.

The Foundation Degrees training will take place both in Newcastle Colleges multi-million-
pound engineering facilities and at Responsive Engineerings base in the Armstrong Works.

The collaboration has meant that Newcastle College students and other partners have visited
Responsive Engineering so that they can gain valuable insights into life inside a
manufacturing facility. Responsive Engineering provides innovative manufacturing solutions
to clients across the globe in a diverse range of industries including subsea, oil and gas,
renewable energy, nuclear, rail, construction, and defence giving students an exciting
opportunity to understand more about a range of industries.

Paul Johnson, Head of Engineering at Newcastle College, said:

The qualification has been designed to enhance employees knowledge in the areas of
mechanical and manufacturing engineering which are most relevant to the needs of modern
industry. The modules have been made to expand on a wide-range of skills and expertise in
the areas of mechanical science, machine tools and fabrication, project management, Maths,
engineering design, and mechatronics, as well as build on previous learning and experience
to develop higher level analytical, critical thinking, problem-solving and employability skills.

Dan Townshend, 25, joined Responsive Engineering as an apprentice nine years ago. He now
works as an inspector, ensuring Responsive Engineerings products meet the highest of
standards for customers. Dan is one of ten Responsive Engineering employees enrolled on
the course.
 39

Dan said: The Foundation Degree is helping me to take those skills on to the next level and
Im really enjoying it so far. Id like to go on to do a full degree and then get more involved
with the design side of engineering.

We believe that the North would benefit from more companies teaming up with Colleges
and Universities to collaborate on the design of Foundation Degrees. By doing so, students
are more likely to learn the skills they need to be productive and highly attractive to local
employers, but will also be able to learn about opportunities in the local area.
 40

Appendix 3: PIE Project

The PIE Project was launched in February 2013 at Tyneview Primary School. The project is the
brainchild of Ammar Mirza CBE who had developed a plan that would see industry-informed
and employer-led enterprise activities take place within primary schools. Ammar Mirzas
motivation to set up the project was a desire to tackle the problems such as: 1) one in five
NEETS (young people Not in Education, Employment or Training); 2) the patchy Careers,
Information, Advice and Guidance service offered to young people and; 3) the lower than
average attainment levels in the North East. The PIE project was established in order to create
a collaborative, cohesive, and consistent approach to tackle the issues.

Over the past four years, the PIE project has engaged with almost 3,000 pupils, 390 parents,
46 schools and 122 businesses. The PIE projects introduction in the North East has meant
that it is the first region in the UK to offer the opportunity for primary school pupils to achieve
a vocational qualification. Through its promotion of a tailored approach to every child and
ensuring they are given relevant opportunities, the PIE project is helping the North East to
lead the way nationally in developing future career and life skills for children as young as
nine.

In the four years that the PIE project has been in operation, it has offered the opportunity to
children in two schools in Walker, Newcastle to develop themselves as well as their own
businesses. The project has enabled students to apply the skills they learn at school in a way
that brings education to life and has tangible value in their real world application. Two shops
were opened which the children were tasked with running. The children had to develop their
CVs to apply for roles within the business and then be interviewed for them. Students
parents were also offered volunteering opportunities which enabled them to upskill too.

The children that participated in the PIE project became the youngest in the country to
achieve an industry-recognised NCFE qualification in Investigating Enterprise. In addition,
such was the level of engagement that the project saw a 100% pass rate, demonstrating its
attractiveness to children.

The PIE project recently launched its first BIG PIE Friday Challenge a project with STEM-
based activities. Over 1,600 ten and eleven year olds participated. It was the largest enterprise
challenge of its kind, which promoted the aim to 'engage, educate, and enlighten' every
child. The Challenge, held on 18th March, involved hundreds of primary school children from
across Newcastle, North Tyneside, and Northumberland competing against each other.
 41

The winning schools from each area have the opportunity to progress on to participate in a
full day of enterprise, where they run their own shop with a start-up capital of 100. An
awards ceremony is planned for June to recognise achievements and present awards.

Debi Bailey, the Head Teacher of Walkergate Primary School and Stephen Gittins, the Head
Teacher of Tyneview Primary School said:

PIE has been hugely beneficial us as a group of schools. More recently, we have widened the
purpose of the shop and integrated this into our whole school attendance and rewards
systems. We now employ a full time member of staff who has responsibility for working
alongside staff and pupils in school developing quality products. They also open the shop
three afternoons a week to ensure families can visit the shop regularly. Pupils are rewarded
for good attendance or behaviour with vouchers that they can exchange for goods at the
shop.

The PIE project has been further developed to continue into secondary schools with a clear
pathway underpinned by vocational qualification. This year, boot camps are being launched
outside of term time, where pupils and their parents participate in a five day professional and
personal development boot camp developed and delivered by Industry.

By engaging with students whilst they are young, and teaching them to develop their
entrepreneurial spirit, we believe the next generation of entrepreneurs will be encouraged
and inspired. The PIE project works to foster business skills in young students by
incorporating them into fun, competitive activities that will reward students for good
attendance and for their achievements. By teaching students about application and
interview skills at a young age, the PIE project is ensuring young children learn the skills and
disciplines that will benefit them throughout their working lives.
 42

Appendix 4: Exeter Mathematics School

Exeter Mathematics School (EMS) is a state-funded sixth form specifically designed to meet
the needs of gifted Mathematics students throughout the South West of England. The school
was opened in September 2014 and is jointly sponsored by the University of Exeter and Exeter
College.

EMS is one of only two university-sponsored specialist sixth forms in the country and has
been designed to provide an excellent preparation for students intending to study STEM
subjects at University and beyond. The school is committed to working with the two
academic institutions, as well as local employers and other schools to ensure that the
education provided is relevant to needs.

Members of staff from Exeter College and the University of Exeter continue to work closely
with the EMS staff to ensure that the curriculum and environment at the school will develop
brilliant Mathematicians.

The schools focus, first and foremost, is to provide an education that enables enthusiastic
young Mathematicians to flourish and succeed. The school encourages enquiry, the pursuit
of open-ended problems and engenders the confidence to do these things without the
scaffolding that is common in current approaches to teaching and assessment of pre-
university Mathematics.

EMS has 120 students (60 per year of sixth-form). All students take A Levels in Mathematics
and Further Mathematics and will choose between Physics and Computer Science; they will
also be able to select from several options for their fourth subject at Exeter College.

Students benefit from regular contact with Exeter University: academics deliver bespoke
workshops to EMS students and all students have an undergraduate student as a mentor. In
addition, EMS students have full access to the wide range of support services and activities
available at Exeter College and will work with local employers so that they can apply their
studies to the workplace.
 43

The UK is ranked 27th in the world for Mathematics. According to the data, some 22% of 15-
year-olds in the UK do not reach Level 2 the baseline of achievement which means they
cannot solve problems routinely faced by adults in their daily lives 45.

Given changing Labour market requirements and an increased focus on STEM subjects
(Science, Technology, Engineering and Mathematics) in the global economy, we believe that
specialist schools like EMS would help the North exploit its full potential and enable students
to excel in key subjects such as Mathematics.

45
OECD, Pisa Rankings 2015, December 2016, https://www.oecd.org/pisa/pisa-2015-results-in-focus.pdf
44