New skills plan aims to tackle workforce challenges and support economic growth

September 15, 2026

Business

A survey involving more than 300 businesses has helped shape a new Local Skills Improvement Plan, highlighting the skills needed to support growth over the next three years.

South & North Cheshire Chamber of Commerce, the employer representative body leading the development of the Cheshire & Warrington Local Skills Improvement Plan (LSIP), has released the findings in a new report following engagement with more than 130 employers and 184 businesses, alongside input from training providers and key stakeholders.

The report highlights growing demand for higher-level technical skills, with the need for Level 3 qualifications and above forecast to increase by 16 per cent by 2035.

Employers also continue to report significant recruitment challenges, with many struggling to find candidates who possess both the technical expertise and workplace-ready skills needed to succeed.

The greatest workforce pressures are being felt across advanced manufacturing, clean energy, life sciences, construction, health and social care, and business and professional services.

Across all sectors, employers are calling for stronger digital, artificial intelligence and sustainability skills, alongside improved communication, problem-solving and employability skills.

LSIP Project Lead Sarah Emes-Young said: “Thank you to everyone who contributed to the development of this employer-led plan.

“The feedback has been invaluable in developing a blueprint for how colleges, training providers, local authorities and businesses will work together over the next three years to ensure Cheshire and Warrington has the skilled workforce needed to support future economic growth.

“By putting businesses at the heart of the conversation, we can make sure that education and training provision is better aligned with their needs, helping people develop the skills they need for the jobs of today and tomorrow.”

The report highlights a number of important findings, including:

  • Demand for Level 3 and above skills is forecast to grow by 16% by 2035, creating a need for stronger technical and higher-level skills pathways.
  • Employers continue to experience recruitment challenges, with many citing difficulties finding candidates who are both technically capable and work-ready.
  • The greatest workforce pressures are found in advanced manufacturing, clean energy, life sciences, construction, health and social care, and business and professional services.
  • Employers are calling for stronger digital, AI and sustainability skills across all sectors, alongside improved workplace readiness, communication and problem-solving skills.
  • Small and medium-sized businesses continue to find the skills and training system difficult to navigate, highlighting the need for simpler routes into training, apprenticeships and levy support.
  • Investment opportunities linked to clean energy, industrial decarbonisation, advanced manufacturing and life sciences will require significant growth in technician and higher technical skills.

The LSIP also sets out a programme of actions focused on strengthening employer voice, improving progression pathways, embedding digital and sustainability skills, supporting inclusion and employability, and ensuring the skills system is better aligned to employer needs.

Phil Smith, Chair of Skills England, said: “The Local Skills Improvement Plans give areas a clear roadmap that will help create better skills for better jobs all across the country.

“These LSIPs, alongside the emerging sector jobs plans and the other stakeholder dialogues we are having, is helping us build a much better picture of the skills needs throughout the nation.

“Skills England is excited to play a key role in that journey, so that employers and learners can benefit in local communities.”

Jacqui Smith, Minister for Skills, said: “For too long too many people have been locked out of opportunity, and businesses have struggled to recruit the skilled staff they need to build their workforce.

“Local leaders have a unique insight into the skills needs and opportunities in their area, which is why we are putting them in the driving seat to support their community.

“Our reforms, including to the Growth and Skills Levy and the Youth Guarantee, will build a workforce prepared for the demands of today as well as the jobs of tomorrow.”

The LSIP is submitted to the Department for Education in addition to education and training providers to help inform a skills policy better matching the needs of the local economy.

To join the conversation, get in touch: LSIP@sccci.co.uk

To read the full report go to https://cheshireandwarringtonlsip.co.uk/

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