The Economy, Culture and Skills Committee met to discuss the London Growth Plan, focusing on its Inclusive Talent Strategy and Backing our Businesses themes. Key discussions revolved around improving adult education commissioning, addressing skills gaps, supporting young people into employment, and enhancing access to finance for small and medium-sized enterprises (SMEs).

London Growth Plan: Inclusive Talent Strategy and Backing our Businesses

The Committee reviewed progress on the London Growth Plan, a joint initiative by the Mayor of London and London Councils, launched on 27 February 2025. The plan aims to address challenges such as weak productivity growth, the housing crisis, high poverty rates, and underinvestment in public services. The discussion focused on the 'Inclusive Talent Strategy' and 'Backing our Businesses' sections, which include twelve actions for the first year.

Adult Education and Skills Gaps

A significant portion of the meeting was dedicated to the reform of adult education commissioning. Howard Dawber OBE, Deputy Mayor for Business and Growth, explained that the Growth Plan aims to shift from a learner-led to an employer-led model. This involves working with the government to gain more flexibility in how the Greater London Authority (GLA) commissions adult education. The current delegation of adult skills funding from the government, received in 2019, comes with restrictions on how it can be spent. The GLA is in discussions for a three-year integrated settlement that would allow for greater flexibility and a longer-term planning horizon.

Anne-Marie Soyinka, Assistant Director of Skills and Employment Policy at the GLA, highlighted the establishment of sector talent boards, which bring together employers to identify skills gaps and inform commissioning priorities. These boards aim to influence national programmes, including apprenticeship and wider funding, to better meet employer needs in London.

The Deputy Mayor noted that while the government is focused on structural issues in the job market, including the rise in sickness benefits claims, London has demonstrated success with programmes like 'Connector to Work', delivering 50% of national outcomes. Discussions with the government are ongoing and described as productive, with a focus on either joint delivery or devolution of responsibilities to the GLA.

The Mayor plans to use the flexibility granted through the Integrated Settlement for adult skills grant funding to achieve the Growth Plan's goals. This includes recasting courses, stopping funding for ineffective programmes, and redirecting money towards areas with high demand, such as bootcamps. The aim is to ensure positive outcomes for individuals and meet sector needs. The new three-year integrated settlement will provide greater financial stability for colleges and providers.

Supporting Young Londoners and Tackling Economic Inactivity

The Committee discussed the 'London Youth Guarantee' and the 'Trailblazer' programmes, designed to reduce the number of young Londoners who are not in education, employment, or training (NEET). The GLA is a key delivery partner for the 'Connector to Work' programme, which aims to support economically inactive and young Londoners. The programme, which began in West London, is now delivered across London and is commissioned by the government. The target is to support 43,000 individuals by April 2029.

The GLA is also involved in the 'Youth Guarantee Trailblazers', which are policy experiments to find new ways of delivering programmes for individuals facing significant barriers to employment. London has five such trailblazers, more than other regions, with a target of supporting 5,000 people across these programmes by March 2026. The focus is on both innovative policy development and delivering tangible outcomes.

The Deputy Mayor acknowledged that the 'Youth Guarantee' is still in its early stages, with a focus on building the necessary infrastructure before a wider rollout. The current approach targets young people through existing organisations to ensure effective delivery. The committee heard that the GLA is also exploring ways to support individuals leaving prison and those with complex needs, working with organisations like 'Bounce Back' and 'Dusty Knuckle'.

Funding for Skills and Growth

A total of £147.2 million has been made available to fund changes related to the Inclusive Talent Strategy. This includes £97 million for the London Talent Pathways Fund, £14 million for new skills infrastructure, £30 million for skills bootcamps, £4.7 million for construction skills, and funding for talent brokerages.

The impact of these initiatives is being measured by actual outcomes, such as people entering employment, and contributions to overall targets, like the creation of 150,000 new good jobs. A 'good job' is defined as meeting the London Living Wage, having career progression opportunities, and fair rights at work, excluding gig economy jobs or zero-hour contracts. The target is to achieve 150,000 good jobs by the end of the current mayoral term. The committee was informed that a comprehensive review of the Inclusive Talent Strategy's impact is expected in October 2026, one year after its commencement.

Supporting Small and Medium-sized Enterprises (SMEs)

The 'Backing our Businesses' theme addressed challenges faced by high-growth SMEs in accessing funding. Howard Dawber OBE, Deputy Mayor for Business and Growth, acknowledged that securing startup and scale-up funding is becoming increasingly difficult in London, leading some companies to consider relocating.

The London Growth Plan includes 'Funding London', a £20 million initiative, with an additional £100 million expected. Funding London, a GLA-managed company, has a 20-year history of financing high-growth SMEs through loan and equity funds, reinvesting capital to support businesses. It has invested over £90 million, enabling more than £1 billion in investments for over 800 SMEs and supporting over 13,000 jobs.

Discussions are ongoing with the British Business Bank regarding a new SME debt fund, with hopes of matching the GLA's £20 million investment. The committee also heard about 'Grow London Global', a programme supporting scale-up businesses to expand internationally through trade missions and workshops. This programme has been successful in generating Gross Value Added (GVA) for London's economy.

Public Sector Procurement and SMEs

The committee discussed efforts to make it easier for SMEs to win public sector contracts. The London Anchor Institutions Network has placed £3.4 billion in contracts with SMEs since its inception, with many going to diverse-led businesses. In the last year alone, network members awarded over 1,200 contracts to SMEs, spending more than £950 million, exceeding their pledged targets. The GLA group has set a target of 20% of contracts to be awarded to SMEs, while the wider Anchor Institutions Network aims for 30%, reflecting different starting points and procurement types across organisations.

Innovation and Future Technologies

The meeting also touched upon the Mayor's AI task force, allocated a £20 million budget. This task force will focus on the medium-term impacts of AI on the job market and explore strategies for transitioning the workforce. It will comprise experts from various sectors, including business, trade unions, academia, and the AI sector itself. The task force is expected to report in the summer.

Additionally, the London Quantum Technology Cluster, established with an initial investment of £0.5 million from the UK Shared Prosperity Fund, is making progress. This partnership between UCL, King's College London, and Imperial College London, along with institutions like the National Physical Laboratory, supports 24 enterprises and 21 organisations. The cluster is focusing on practical applications of quantum technology, including its use in the London Underground for asset tracking and in the NHS for diagnostics. The GLA is also involved in securing further UK Research and Innovation (UKRI) funding for innovation clusters.

Community Banks and Financial Inclusion

The committee heard from representatives of credit unions about their role in promoting financial inclusion and providing alternatives to mainstream banking. Credit unions are member-owned, not-for-profit organisations that offer savings, loans, and other financial services. They are seen as crucial in supporting financially vulnerable individuals and communities, offering more personal and accommodating services than traditional banks.

Despite their benefits, credit unions face challenges with awareness and perception, often being seen as only serving the poorest. Efforts are underway to broaden their appeal and offer a wider range of services, including mortgages and ethical car finance. The current regulatory framework in the UK is seen as more restrictive compared to countries like the US and Ireland, where credit unions have a more established and integrated role in the financial system. There is a call for greater collaboration between credit unions and for policy changes, such as increasing the common bond membership limit and exploring payroll savings schemes, to enhance their reach and impact. The Mayor's Good Work Standard is seen as an effective tool for promoting partnerships between credit unions and employers.

Support for Unpaid Carers

An informal session with unpaid carers highlighted the significant challenges they face, including financial strain, isolation, exhaustion, and a lack of adequate support. Carers spoke about the difficulties in accessing information, navigating complex systems, and the emotional toll of their roles. Key issues raised included the need for better identification of carers, particularly young carers, more accessible and consistent information on entitlements, and improved respite care. The lack of adequate funding for carers' services and the impact of local authority budget cuts were also significant concerns. Carers stressed the importance of peer-to-peer support and the need for more tailored services, including those for mutual carers and those with specific needs like mental health support. The potential for a London-wide campaign to raise awareness and the development of a 'Carer's Charter' were suggested as ways to improve support. The need for more flexible employment opportunities and recognition of the skills gained through caring was also highlighted.

The committee acknowledged the critical role of unpaid carers and committed to taking forward recommendations to improve support, focusing on consistency of information, strategic planning, and advocating for better resources. The issue of transport costs and accessibility for carers was also raised as a significant barrier.

Response to 'Employment in London After Prison' Report

The committee noted the response from the Minister of State for Prisons, Probation and Reducing Reoffending to its report on employment in London after prison. The Minister acknowledged the report's findings on barriers to employment, skills provision, employer engagement, and post-release support. While sharing the desire to improve outcomes, the Minister could not commit to future funding for probation services, which will be subject to future spending rounds. However, the Ministry of Justice is reviewing the discharge grant and exploring options for a London weighting, alongside working with the Department for Work and Pensions to ensure timely access to benefits and employment support on release. The Ministry of Justice is also keen to explore better collaboration with MOPAC (Metropolitan Police Office) on the report's priorities.

Summary List of Actions

The committee noted the ongoing actions arising from previous meetings. A key outstanding action is for the Chief Executive of the Association of British Credit Unions to provide further information regarding the extent of illegal lending levels in London. Authority was delegated to the Chair, in consultation with party Group Lead Members, to agree any output arising from the discussions.