18.10.16
May’s industrial strategy ‘must address Brexit skills impact on HS2’
HS2 could suffer from a loss of foreign workers after Brexit unless the government makes addressing the shortage part of its industrial strategy, Balfour Beatty has said.
The infrastructure company’s newest briefing paper said that the 2.2 million EU nationals working in the UK have provided the skills workforce the UK cannot source at home.
It argued that uncertainty about free movement of labour could cause recruitment and staffing difficulties, lead to increased costs where demand for labour outstrips supply, and risk causing delays – especially on HS2 and the nuclear new build programme.
Both Balfour Beatty and the head of the National Audit Office had already warned that HS2 could suffer from a skills and funding shortage after Brexit, although prime minister Theresa May and transport secretary Chris Grayling have insisted it will still go ahead.
It is understood that the Cabinet is considering plans to try to limit migration as part of the UK’s exit from the EU.
But Balfour Beatty stressed that May’s government industrial strategy should include an “early and integrated” policy to retain the skills of workers who have migrated to Britain and continue to make the country an attractive place for overseas workers.
A Cabinet Committee on Industrial Strategy has already been formed, and Balfour Beatty said a multi-departmental strategy would be needed, with the Department for Business, Energy and Industrial Strategy working closely with the Departments for International Trade and Exiting the European Union.
However, it also argued the strategy must support upskilling the UK workforce. Balfour Beatty said the new apprenticeship levy was “welcome” but would not address the shortfall in workers.
Instead, the company claimed a “collegiate approach” was needed, with a single programme agreed between the government, industry and representative bodies.
Speaking at iRail 2016 earlier this year, John Evans, the then CEO of the National College for High Speed Rail, said that rail engineering would have to present its “human side” to attract the next generation and address the rail industry skills shortage.
Overall, Balfour Beatty said the industrial strategy should focus on achieving “sustained and sustainable productivity” across the whole economy, including different geographic areas and SMEs, and boosting infrastructure and key industries.
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