In his 1963 ‘white heat of technology’ speech, Harold Wilson emphasised the importance of the “extent of the speed with which we come to terms with the world of change”. This sentiment could not be more important as we enter the short campaign of the general election, and manifestos are finalised.
Digital technology has and will continue to transform our lives and our economy. Digital skills are vital to the growth of the technology sector and to the growth of London. It is fascinating to see how a cluster of some of the world’s largest tech companies has developed in one of the poorest and most diverse areas of London. When Google arrives in Kings Cross, there will be more tech jobs in London than in Silicon Valley. But we have to meet the challenge of how best to equip our young people to access this amazing opportunity right on their doorstep.
It was announced a few weeks ago that the £550 million currently spent in London by the Skills Funding Agency is to transfer to the Mayor. This is a huge responsibility; our capital city faces the twin challenges of a higher unemployment rate than nationally and a skills system which churns out a huge surplus of hairdressers and health and safety officers but fails to equip learners with the skills to get jobs in growth sectors. The tech and information sector – although accounting for 30 per cent of the total increase in London jobs since 2009 – is still struggling to recruit.
One quarter of the vacancies in London are attributed to skills shortages, a fact which clearly demonstrates that the system simply doesn’t work. Providers are incentivised by how many learners they get through the door and how many qualifications they achieve rather than the outcomes they deliver for their students. The incentives are all wrong and education pathways too often do not lead to 21stcentury jobs.
The first part of that journey is improving attainment rates in our schools. In my own borough of Haringey, we have worked hard with our head teachers and parents to drive up standards. All secondary schools are rated as good or outstanding and GCSE results are the most improved in the country. Building on that success, we will announce later this year a STEM (Science, Technology, Engineering and Maths) Commission that will draw on expertise from the relevant industries and education specialists to ensure we are creating as many opportunities as possible for our young people to develop the right skills and get jobs in those sectors.
We also need to exploit the success of the growth areas in the city and Tottenham is the next chapter in London’s regeneration story. As well as meeting rising demand for housing, we must also capitalise on this changing landscape and attract the right mix of job opportunities. The first wave of digital companies grew up on university campuses and science parks. But in recent years, as demonstrated by the growth of Tech City in East London, this has moved to cities and particularly neighbourhoods that offer cheap rents and urban edge.
Ensuring we harness opportunities to connect our young people to these jobs – through training and through using regeneration to bring jobs to our neighbourhoods – is essential not just to supporting our communities and making the most from burgeoning industries, but also to tackling London’s rising inequality.
Claire Kober is Leader of Haringey Council
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