A new national report has reinforced the vital role of employer-led skills planning in tackling youth disengagement, with the Cambridgeshire & Peterborough Local Skills Improvement Plan (LSIP) highlighted as a key driver of progress in connecting businesses with education and training.
Published by the British Chambers of Commerce, the report evaluates the impact of LSIPs across England and calls for stronger alignment between education, employers and careers guidance to better engage Generation Z in the workplace.
There are currently 39 LSIPs in operation across England, with 33 led by Chambers of Commerce. Over the past four years, they have brought together thousands of employers, training providers and stakeholders to shape provision around real economic need.
The report highlights strong progress nationally, with LSIPs supporting the design of new courses, investment in training facilities and improved access to learning. However, it also identifies key challenges, including fragmented funding, limited influence in pre-16 education and the need for earlier engagement with young people.
In Cambridgeshire and Peterborough, the LSIP continues to play a central role in aligning skills provision with the needs of priority sectors including life sciences, advanced manufacturing, agri-tech and digital.
Through extensive employer engagement, the LSIP has helped ensure training reflects real-world demand, while also strengthening collaboration between further education, independent training providers and businesses across the region.
Kate Shoesmith, Director of Policy at the British Chambers of Commerce, said:
“LSIPs have been really successful – involving thousands of businesses, training providers and learners over the past four years, to deliver great employment outcomes.
“But they are being held back from achieving more. For instance, there is an urgent need to plug gaps in the quality and consistency of careers advice available to schools.
“With almost one million Gen Zs not in employment, education or training, earlier intervention is essential to connect young people to the world of work. The longer they are allowed to drift away from employment the harder it becomes.”
Commenting on the findings, Nick Frank, LSIP Manager at the Cambridgeshire Chamber of Commerce said:
“LSIPs have transformed how employers influence skills provision, ensuring that training is more responsive, relevant and aligned with the needs of local economies.
“In Cambridgeshire and Peterborough, we are seeing first-hand the benefits of this approach, particularly in supporting key sectors and strengthening collaboration between education and industry.
“However, the report reflects what we are hearing locally. There is more to do to engage young people earlier and ensure they understand the breadth of opportunities available to them.
“With the right long-term support and stronger links into schools, LSIPs can play an even greater role in helping young people access clear, meaningful pathways into work.”
The British Chambers of Commerce report also calls for closer integration between LSIPs and the Government’s Youth Guarantee, enabling Employer Representative Bodies to play a greater role in connecting young people with opportunities.
The Cambridgeshire Chamber is backing these recommendations, highlighting that the infrastructure, employer networks and strategic insight already exist through LSIPs to deliver lasting change.