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[Sir Graham Brady in the Chair]
12 January 2023
Lead MP
Patricia Gibson
North Ayrshire and Arran
SNP
Responding Minister
Kevin Hollinrake
Tags
ImmigrationEconomyTaxationEmploymentScience & TechnologyAgriculture & Rural AffairsParliamentary Procedure
Word Count: 12942
Other Contributors: 6
At a Glance
Patricia Gibson raised concerns about [sir graham brady in the chair] in Westminster Hall. A government minister responded.
Key Requests to Government:
Gibson urges the government to allow businesses to recruit more easily from abroad for all skill levels and requests details on a review of workforce participation issues that was promised by the Chancellor. She also suggests establishing a Scottish visa scheme and allowing asylum seekers to work to address the shortages.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Patricia Gibson is concerned about the labour and skills shortages affecting every sector of the UK economy, leading to productivity issues and reduced public services. She cites specific shortages in healthcare, agriculture, construction, and cybersecurity, with estimates suggesting a shortage of up to 12,000 doctors and over 50,000 nurses in the NHS alone. The shortages are also causing an economic loss of £39 billion annually from 2024 according to some studies.
Jim Shannon
DUP
Strangford
Supported comments made earlier, highlighting issues in Northern Ireland with refugees from Syria and Afghanistan still residing in hotels despite willingness from local companies to employ them. Jim Shannon highlighted significant labour shortages in food production, hospitality, and motor repair industries within his constituency. He noted that local businesses such as Willowbrook Foods and Mash Direct have available jobs for Afghan refugees but face difficulties filling these roles due to a lack of skilled workers. Shannon also emphasized the need for improvements in apprenticeship programs, suggesting higher pay rates could attract more talent. Additionally, he mentioned potential financial losses amounting to £39 billion annually if labour shortages are not addressed.
Joanna Cherry
SNP
Edinburgh South West
Commends Patricia Gibson's exposition on skills and labour shortages in Scotland, highlights the importance of reducing red tape for employers and universities. Stresses the need for a pragmatic approach to replacing free movement, underlines the role of apprenticeships and adult education, and raises concerns about trade unions' contribution amid government attacks. Discusses difficulties faced by small businesses and food production sectors due to staff shortages, mentions the need for asylum seekers to work. Highlights specific challenges in the renewables sector and calls for better support from the Government.
The hon. Member questioned the government's post-Brexit migration approach, suggesting it negatively impacts sectors like agriculture and healthcare due to a lack of crucial workers. Does the right hon. Lady agree that investing time and money in engaging unemployed younger people could help address labour and skills shortages, potentially balancing out inactivity among those approaching retirement?
Blackpool North and FY
She highlighted the need for a long-term perspective on skills strategy, particularly in light of automation and AI's impact on job sectors. Greenwood criticised the Government's current approach to adult education funding and its focus on vocational training at the expense of broader educational opportunities. Asked how we will get investment in adult basic skills, highlighting that local employers may not consider those who cannot read or write well, expressing concern that this cohort might miss out on help.
Theresa Villiers
Con
Belfast East
Responded that recent net migration figures are around half a million, indicating a liberal immigration policy focused on economic needs. Apprenticeships are a highly effective way to improve people's skills, boosting productivity and addressing labour shortages. Since the Conservatives returned in 2010, there have been around 5.2 million apprenticeships delivered. However, there has been a slight fall since the COVID pandemic which needs addressing.
Toby Perkins
Lab
Chesterfield
Congratulated the hon. Member and clarified whether the suggestion is for a 24-month visa scheme or a return to freedom of movement, addressing concerns about Brexit's impact exacerbated by the pandemic. I share the right hon. Lady's enthusiasm for apprenticeships but am concerned about the decline in apprenticeship numbers since the introduction of the apprenticeship levy, particularly in small and medium-sized enterprises. I suggest making the apprenticeship levy more flexible to include these businesses. Asked Theresa Villiers to acknowledge the retrograde and politically motivated move of getting rid of Unionlearn, a programme that enabled workers in the workplace to access basic skills training. Skills shortages are a significant issue across the UK. The removal of freedom of movement due to Brexit has exacerbated this, along with an increase in workers leaving during the pandemic. Toby supports a broader strategic migration plan and recognises the need for migrant workers, especially in unskilled environments. He also highlights population growth differences between England and Scotland, arguing that there are different needs within the UK.
Government Response
Kevin Hollinrake
Government Response
It is a pleasure to speak with you in the Chair, Sir Graham. I congratulate the hon. Member for North Ayrshire and Arran on securing this vital debate. Despite the shocks of the pandemic, the labour market has recovered well, with an employment rate at a historic high and unemployment and inactivity low by historical and global standards. Employment shortages are acknowledged as a drag on the economy. There was net migration of over 500,000 people last year, indicating complex causes of labour shortages including long-term sickness and early retirement. The Government is making significant efforts to address these issues and has set out a review scope in the autumn statement for a thorough assessment of workforce participation early in 2023. Numerous Select Committees have also taken an interest in labour shortages. The Department for Education leads on improving the collection, analysis, and dissemination of labour market information to support decision-making across the skills system. Local skills improvement plans are established to forge stronger partnerships between employers and providers, making training more responsive to employer and local market needs. Over 5.1 million apprenticeship starts have occurred since May 2010, with initiatives like Trade Up aiming to double the number of construction workers through short courses. The Government's research and development people and culture strategy aims for a full pipeline of research and innovation workers for the future. A new points-based immigration system is in place to control migration while pragmatically addressing labour shortages.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.