Opportunities to work and train for Londoners created by boroughs through their supply chains, have been lost because of skills shortages, says London Councils.
Boroughs, working with their contractors, have been successful at creating a range of jobs and training places for their residents since the launch of the London Procurement Pledge 18 months ago, London Councils has found. However, feedback gathered from boroughs and employers reveals there are skills shortages resulting in not enough candidates with the right technical and employability skills to take advantage of all the offers available.
The new findings follow a London Councils report issued last year which concluded the capital was suffering from skills shortages.
Councillor Peter John, Executive member for skills and employment, said: “Boroughs are doing everything they can – and more - to create jobs and training opportunities for their residents.
“For example in my borough of Southwark, we’ve worked with Lend Lease, the contractor on the Elephant and Castle regeneration project to create a range of jobs for our residents.
“However, we’ve also recognised there is no point creating jobs, if there are not the right candidates to fill them, so Lend Lease is working with us to create skills and training opportunities.
“Similar innovative approaches to this problem are being pioneered by other boroughs and their suppliers. However, in order to achieve more, we want to see skills powers devolved to councils so they can enhance the employment potential of their residents.”
The London Procurement Pledge commits London boroughs to use their contracts for goods and services to generate employment and skills opportunities.
Myth-busting guidance for boroughs and for suppliers has been published by London Councils in partnership with influential business membership organisation London First. It aims to raise awareness of the employment and skills opportunities through procurement by highlighting key success stories, and dispel some preconceived ideas on how to generate jobs and skills through procurement.
Among the projects mentioned in London Councils’ Myth-busting guidance for boroughs and suppliers are:
• Lend Lease - The property and infrastructure provider is leading the major £1.5 billion regeneration of Elephant and Castle due to be completed in 2025. Working with Southwark Council, Lend Lease has created jobs for people and created the right people for these jobs through training and skills opportunities to get residents recruitment ready.
• Tower Hamlets Decent Homes – The programme will see more than 7,500 homes in the borough renovated and refurbished by 2015/16. Tower Hamlets Council has secured commitments from contractors to create 240 apprenticeships and adult work experience places over the lifetime of the programme. Furthermore, contractors are committed each year to account for 20 per cent of local spend.
• The London borough of Havering iProc – Havering’s online procurement system, known as iProc, was named Best cutting of red tape at the Small Business Friendly Borough Awards 2013. The system not only makes the process of buying and paying for goods, works and services simpler, but enables the council to see where, and with whom, money is spent. It has particularly benefited local businesses which in 2012 made up more than 20 per cent of the council’s spend.