8 March 2011
Secretary of State for Business, Vince Cable, and Minister for Skills, John Hayes, last week launched a £50 million a year fund to help businesses develop the skills they need to drive growth.

The Growth and Innovation Fund (GIF) will deliver targeted help for employer groups to overcome barriers to growth within their sectors and industries. The funding could deliver new training to boost innovation and productivity, enable industries to set new professional standards, or support new or extended National Skills Academies.

BIS will invest up to £50m per year in partnership with businesses, whose investment alongside Government could deliver a total of up £100m a year.

Mr Aldous said:
“In order to rebalance and grow our economy, we need to tackle the skills shortages that hold companies back. Through this fund, Government will support employers that take collective action to overcome these blockages to expansion. This puts the employer at the heart of the process, and aims to reward inventive approaches to training that deliver real help to get business moving.”

The investment fund – which will be delivered in partnership by the UK Commission for Employment and Skills (UKCES) and the Skills Funding Agency (SFA) – invites proposals from employer organisations such as Sector Skills Councils, professional bodies and trade associations. The prospectus – published today – outlines three types of project where GIF funding and employer investment can be brought together:

  • ‘Best Market Solutions’: which will invest in the best innovative ideas to drive enterprise and remove skills barriers to growth, including through the introduction of new voluntary professional standards and voluntary training levies

  • National Skills Academies: expanding the successful network of National Skills Academies, which already exist in 16 sectors such as Environmental Technology, Railway Engineering and Retail

  • Joint Investment Programme: bringing together employer and public investment in specific training projects which improve business productivity and growth, or address skills gaps and shortages.