As the prime minister gets set to trigger Article 50 on Wednesday, the fact that we are to leave the European Union remains clear. But the aggregate effects that this decision will have on the UK economy remain anything but clear. There is no blueprint that shows how a nation begins to leave the EU, so the process is bound up with a huge degree of uncertainty.

The decision to leave comes at a time when the UK is faced with a skills crisis that is unique in its scale and complexity. Our productivity falls behind other major economies, and key sectors that are fundamental to UK growth, such as construction, technology, engineering and advanced manufacturing, all report massive skills shortages that have been growing over the past five years. This is evidenced in the 2016 Education and Skills Survey, in which 69 per cent of businesses - the highest level on record - expressed concern about the supply of skilled workers. These were significant issues before the referendum, but now the decision to leave the EU will create added pressure on a skills system already confronted with the dual challenges of an aging demographic and widening skills gaps in key industries. 

Colleges ‘benefit from the EU’

The challenges that the British economy faces are considerable, but the reality is that we are leaving the EU. The question, then, becomes: how do we best meet these challenges and create an adaptive, resilient and highly skilled Britain? The FE sector is a large employer, but it also provides training within key industries that are vital to the UK’s long-term economic growth and will ultimately play a crucial role in delivering the skills that Britain will need if it is to be competitive in the global economy.

The primacy given to skills within the government’s industrial strategy shows that education and training will be a key driver of Britain’s future economic prosperity, and we are encouraged by the proposals for the implementation of the Sainsbury Review and the government’s budget announcement to allocate £500 million a year to simplify and enhance technical and professional education pathways. These reforms are not a fully realised solution to the challenges posed by Brexit, but they represent an important step to provide the UK with the skills it needs to compete in what remains a globalised economy.

Yet the fact remains that under current arrangements FE colleges derive great benefits from our membership of the EU. These benefits include the ability to recruit from EU nations, as well as access to significant levels of EU funding. Additionally, our colleges benefit from the rich cultural perspectives and insights that can be leveraged through partnership working with other European colleges. At the heart of FE is its deep commitment to local communities, social inclusion and social cohesion, which enables people from all backgrounds to aspire and to achieve success. Brexit must not be used as a reason to close our door to the rest of Europe.

Capitalising on the Brexit opportunity

The Collab Group has produced a point of view through conversations with our member college principals to understand how Brexit will impact their colleges. Whilst Collab Group principals expressed concerns relating to a range of issues, there was a sense of confidence in the ability of FE to rise to the occasion and meet the challenges of Brexit head-on. We will not minimise the challenges that Brexit poses, rather we present them within a broader context of how FE can build on the work already being undertaken to equip Britain with the skills it needs to drive future economic growth.

The impacts of leaving the EU could be profound for the FE and skills system and there are still many unanswered questions. The FE sector derives considerable value from our membership of the EU, whether it is through access to EU nationals, the funding received through European Social Fund grants, or the partnerships and networks that have been created between UK and other European colleges. These are all elements that need to be protected. Now there is an ever-pressing need for actors to come together to deliver the skills that the UK needs in alignment with government’s industrial strategy. A successful Brexit requires a responsive and agile skills system and FE will be crucial to deliver this. This will be achieved through the development of our current FE colleges, the reforms around technical and professional education and the roll-out of new employer-led delivery models. It will be vital to make sure that the right partnership arrangements are in place to ensure that local areas, and the UK economy, can capitalise on the Brexit opportunity. 

So how to sum this up? Perhaps in one simple phrase: “Brexit needs FE.”

Ian Pretty is CEO of the Collab Group of Colleges

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