Relevant training needed to close London's skills gap

Small businesses in London are calling for more relevant training as skills shortages threaten to hamper recovery, new research suggests.

Echoing the views of 45% of the capital's senior executives who slammed publicly funded training and skills support as not being "useful or relevant", around 30% of small firms questioned for the London Business Survey complained of skills shortages, despite the rising unemployment levels.

Sectors most affected include transport, energy, manufacturing and construction, and hospitality, leisure and retail.

The survey, carried out by the Confederation of British Industry and professional services provider KPMG, also found that small businesses in the capital were struggling to access Government funded support.

Some 23% of small businesses said that they found it difficult to access support from schemes such as Train to Gain and Business Link, with half of those that did saying that it did not meet their business's needs.

Looking to address skills gaps through on-job training, small businesses expressed a willingness to expand their provision of work experience placements, but called for greater practical support to help them navigate the bureaucracy involved.

Meanwhile, Richard Reid, London chairman of KPMG, said: "London's success increasingly relies on its ability to function as a highly skilled, hi-tech economy.

"Whilst it is inevitable that businesses will continue to keep a tight rein over spend, training and improving the skills of London’s workforce is essential so that when the upturn starts to arrive, the City is in a strong position to move forward. Businesses will start hiring again and they must have access to staff equipped with both basic and more advanced skills."