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Bridging the Gap: Tackling the Skills Shortage Through LSIP 2.0

Written by Bedfordshire Chamber of Commerce | 30 Oct 2025

Across Bedfordshire and beyond, the conversation around skills has never been more urgent.

A recent report by Business Matters highlights what many local employers already know all too well: the UK is facing a critical skills shortage, particularly in trades and technical sectors. Despite strong demand, businesses are struggling to recruit qualified people, and this shortage is putting the brakes on growth and productivity.

According to the findings, over half of UK tradespeople believe the shortage has reached crisis levels. Vacancy rates remain stubbornly high, and the challenge is compounded by an ageing workforce and a shortfall in new apprentices entering key sectors such as construction, plumbing, and electrical engineering.

At the same time, the apprenticeship levy, designed to support skills development, remains underused and often misunderstood. As a result, the pipeline of new talent is thinner than ever, leaving businesses competing for too few skilled workers.

Here in Bedfordshire, our members tell us the same story: the ambition to grow is there, but the people pipeline isn’t keeping pace.

That’s why the next phase of the Local Skills Improvement Plan (LSIP 2.0) is so important.

From Planning to Progress: LSIP 2.0 Takes Shape

Four years on from the Government’s Skills for Jobs White Paper, Local Skills Improvement Plans are entering a new and more targeted phase. LSIP 2.0 builds on the groundwork laid by the first plan, deepening the collaboration between employers, education providers, and local authorities - and focusing on turning insight into action.

Working in partnership with the Northamptonshire and Milton Keynes Chambers of Commerce, here at the Bedfordshire Chamber, we continue to lead this work as the Employer Representative Body for our region. Together, we are ensuring that the real voice of business shapes the future of local training and skills delivery.

As Justin Richardson, CEO of Bedfordshire Chamber of Commerce, explains: “The LSIP allows us to work with employers to get the skills they actually need to grow their business. There’s still a disconnect between what’s taught and what companies really want, and LSIP 2.0 is about changing that landscape.”

This means tackling the barriers that stop people from entering skilled professions. For example, in construction, around 134,000 people gain qualifications each year, yet only 50,000 go on to work in the industry. The reasons are complex, from transport and social mobility challenges, to the need for ‘licences to practise’ such as the CSCS card, which aren’t always embedded in college courses.

Building a System That Works for Business

At its heart, LSIP 2.0 is about relevance, accessibility, and understanding.

Employers have told us they don’t necessarily need more provision but provision that’s aligned, clearly communicated, and easy to access. Many SMEs simply don’t have the time to navigate the complex ‘language of skills’.

That’s why this new phase focuses on making the system simpler, more joined-up, and grounded in the realities of local business. Through partnerships with colleges, universities, job centres, and independent training providers, LSIP 2.0 will continue to identify the real gaps in our region’s priority sectors - from clean energy and digital technology, to logistics, health, and construction.

And crucially, it’s about turning that intelligence into delivery. Ensuring training leads directly to jobs, and jobs lead to long-term prosperity.

A Collaborative Approach

The LSIP operates as a collaborative partnership, uniting employers and educators in a shared mission. Regular “Task & Finish” events across Bedfordshire, Northamptonshire and Milton Keynes will bring together stakeholders, including local authorities, universities such as Bedfordshire and Cranfield, and the Growth Hub, to track progress and refine delivery.

This is not just another policy exercise. It’s about creating a living, responsive skills system that evolves alongside our economy. One that gives businesses the confidence to grow, and individuals the opportunity to thrive.

Looking Ahead

For Bedfordshire businesses, LSIP 2.0 represents both a challenge and an opportunity.

The challenge is clear: to close the gap between what employers need and what the system provides. But the opportunity is even greater; to shape a future workforce that’s fit for purpose, future-ready, and locally rooted.

At Bedfordshire Chamber of Commerce, we’re proud to be playing our part in that journey. We’re ensuring your voice informs decisions, your needs are understood, and your growth is supported.

Together, we can bridge the gap between potential and progress to build a stronger, more skilled, and more competitive Bedfordshire for the years ahead.

To find out more about the LSIP 2.0 programme, visit www.chamber-business.com or call our friendly team on 01582 522448.

Topics: business, skills, Local Skills Improvement Plan

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