A pioneering scheme for business-led skills planning in England has been given the green light for another three years by the government, today.
Local Skills Improvement Plans (LSIPs) have been running for four years and have engaged thousands of people and employers in the training and education that firms desperately need.
There are 39 LSIPs in England and 33 of them are run by Chambers of Commerce. They bring together businesses, education providers and other stakeholders in their areas to identify the skills needed to support local economies.
In 2025, the Berkshire and Oxfordshire LSIP involved more than 100 businesses in helping design 45 new courses. This led to more than 1,400 people accessing new training which met real employer needs.
Meanwhile the Essex LSIP was able to target funding towards the creation of new facilities and equipment that helped more than 2,200 learners.
Kate Shoesmith, Director of Policy at the BCC, said:
“Today’s announcement will mean our employers and educators can continue to work together to provide the training young people need for the jobs of tomorrow.
“LSIPs have involved thousands of businesses, training providers and learners over the past four years, to deliver great employment outcomes because they think about what is needed in their locality.
“But the government must now think about how we maximise the benefits of this system. Annual funding cycles – particularly against three-year strategic plans – are difficult for everyone to manage. There is also an urgent need to plug gaps in the quality and consistency of careers advice available to schools.
“Many LSIPs report that schools are not aware of the growth areas in their local economies, or the breadth of careers different sectors can offer.
“That isn’t the fault of teachers – they have enough on their plate. But with over one million Gen Zs not in employment, education or training, earlier intervention is essential to connect them to the world of work.
“The longer they are allowed to drift away from employment the harder it becomes. By linking the government’s Youth Guarantee schemes to LSIPs, which have strategic oversight of their local economies, a pathway into work can be created.”