11/03/2011
The government is set to overcome the problem of skills shortages by giving businesses £50 million to invest, reports hrmagazine.co.uk.
The minister of skills John Hayes and secretary of state for business Vince Cable have announced the Growth Investment Fund (GIF) which will "help employer groups overcome barriers to growth within their sectors and industries."
Cable said of the new scheme: "This Government understands that to re-balance and grow our economy, we need to tackle the skills shortages that hold companies back. Through this fund, we will support employers to overcome these blockages to expansion.''
"By putting the employer voice at the heart of the process, we will reward inventive approaches to training that deliver real help to get business moving," he added.
Added investment into growth spells good news for SMEs. Enterprises looking to add to their budget and growth can also turn to sales finance to free up any cash tied up in unpaid invoices.
However, Unite assistant general secretary Tony Burke said to unitetheunion.org the investment was a 'knee jerk' reaction that is too little, too late.
"There are a number of companies who do invest in the skills of their workforce. However, we are facing skill shortages because of a 'make do and mend' attitude from some employers and the lack of awareness of the benefits of taking on apprentices and retraining the workforce," he said.
Ashley Curtis