The government should cancel half its planned cut in corporation tax and spend £1 billion of the savings on the FE sector, a new report has said.

The Resolution Foundation, a thinktank that aims to improve the standard of living of low- and middle-income families, said this extra funding is needed to make a success of the government’s technical education reforms, including T levels.

In its Technical Fault report, from the foundation’s Intergenerational Commission, the organisation sets out how the Treasury should not cut corporation tax by 2 per cent from 19 per cent. Instead, the report says, it should set the tax at 18 per cent and spend half of the £2 billion it would save by 2020 on FE colleges and other providers.

Three-quarters of businesses ‘have not heard of T levels’

According to the foundation, a major funding boost and business engagement drive is needed to get T levels off the ground and help the neglected majority of young non-graduates who are “badly let down by the education system”.

The report strongly welcomes the introduction of T levels from 2020 but warns that their successful introduction means overcoming widespread indifference from business. New polling shows that nearly three-quarters of businesses have not seen or heard anything of T levels. 

While the full roll-out of T levels is not due until 2022, the foundation says the lack of awareness is concerning given the pivotal role businesses will play in T levels, which include 45 days’ worth of work placements. 

Fewer than one in five firms said that their business is already set up to, or could easily, provide work placements compared to one in four firms who said their workplace was not suitable for 16- to 18-year-olds.

‘Ripe for reform’

Kathleen Henehan, policy analyst at the Resolution Foundation, said Britain’s continued failure to value vocational education has left non-graduates facing huge pay and career penalties.

“Post-16 education is ripe for reform, and the government is on the right track with new ‘T levels’ planned for roll-out from 2020. However, proper funding and employer engagement with the new qualifications are crucial to making them a success”.

She added: “As things stand, businesses are largely unaware of what T levels are, and too few are ready to play a role in making them work. Young people cannot afford another failed further education initiative. The government needs to back up its proposals with a major cash injection and a hearts and minds business engagement plan.

“Firms rightly often complain that Britain’s education failings hold back their competitiveness. So by putting £1 billion of the savings from cancelling half of the planned corporation cut into further education instead, the government can support young workers and get businesses the technical skills they need”.

Post-18 review

A Department for Education spokesperson said: “The introduction of new T levels will fundamentally reform technical education in this country, giving people access to a high quality technical qualification to rival traditional academic options, and businesses the skills they need to grow.

“We will invest an extra £500 million per year in T levels once they are up and running, and will allocate further funding this year to enable providers to develop high quality work placements, so people taking T levels get the chance to gain vital on the job training.

“Our review of post-18 education will also look at how we can give everyone a genuine choice between high quality technical, vocational and academic routes, breaking down false boundaries between further and higher education, to create a system which is truly joined up and will help provide the skills our economy needs for the future.”

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