Government responds to transport manufacturing skills report without major policy shifts

The Government has responded to the Transport Committee’s report on skills in transport manufacturing, acknowledging workforce shortages across the sector but stopping short of committing to major new interventions.

In its formal response, ministers said they “recognise the significant challenges that skills gaps present to transport manufacturing”, though several of the Committee’s key recommendations were only partially accepted or rejected outright.

One recommendation partially accepted was a proposal for Skills England to explore the introduction of a “competency passport” system, intended to help workers transfer recognised skills more easily between employers and roles. However, the Government did not provide a timeline or commit to a dedicated consultation with the transport manufacturing sector.

The Government also declined calls to loosen restrictions on how apprenticeship levy funding can be used, despite evidence submitted to the inquiry by transport manufacturing firms and industry bodies.

Recommendations to restore public funding for Level 7 apprenticeships across all age groups were similarly rejected.

On diversity, ministers rejected proposals for Skills England to outline how it would support the Government’s ambitions to improve representation across manufacturing industries. Instead, the response pointed to ongoing work through the Make UK Equality Taskforce, without confirming delivery dates or specific measures.

Transport Committee Chair Ruth Cadbury criticised the lack of targeted action.

“It’s good to see Government acknowledging the significant challenges that skills gaps present to the transport manufacturing sector,” she said.

“But while our report called for specific actions to help close those gaps, the Government’s response lacks any sector-specific focus.”

Cadbury also expressed disappointment at the Government’s refusal to impose stronger employer requirements aimed at improving workforce diversity, arguing that the sector risked missing opportunities tied to electric vehicle production, alternative fuels and wider transport decarbonisation programmes.

The Committee said it would continue monitoring progress, particularly in regions where transport manufacturing plays a major role in local employment and economic growth.

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