Chancellor to use Budget to build £60bn Brexit war chest as he pumps £500m into skills training for teenagers
Philip Hammond will frame the move as the most significant shake-up in post-16 education since the introduction of A-levels 70 years ago
THE CHANCELLOR will use his first Budget to build up a £60billion Brexit war chest while pumping £500million into skills training for 16 to 19-year-olds.
Philip Hammond will frame the move in Wednesday’s speech as the most significant shake-up in post-16 education since the introduction of A-levels 70 years ago.
And the Government will launch a wide-ranging reform of technical education, which will see the current 13,000 separate qualifications replaced with "15 world-class routes" better suited to business needs.
The £500million a year investment from 2019 is also aimed at boosting Britain's productivity levels, and will see the amount of training for teenagers on technical routes increase by more than 50% to over 900 hours a year.
But Mr Hammond has criticised people calling on him to launch a spending spree on the back of more public borrowing as "reckless".
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Writing in the , the Chancellor insisted he would not take a "confused" approach to public finances.
He said: "While we are making steady progress in eliminating the deficit, there are still some voices calling for massive borrowing to fund huge spending sprees.
"That approach is not only confused, it's reckless, unsustainable and unfair on our young people who would be left to deal with the consequences."
The Chancellor said his approach would mean "flexibility ... throughout the remainder of this parliament to ensure our economic resilience".
But Mr Hammond will announce this week that councils will get an emergency cash injection of more than £1.3billion over the next two years to combat the growing crisis in social care.
He is throwing the NHS a lifeline after finding the cash to stave off collapse while a long-term solution to the funds shortfall is found.
Speaking about the money for technical education, Lord Sainsbury, who chaired a Government probe into reform of technical education last year, said the announcement “should be welcomed by everyone”.
He said: “Targeted investment of this type makes economic sense - our international competitors recognised long ago that investing in technical education is essential to enhancing national productivity.
“But it is also essential if we are to equip people with the knowledge and skills they need to obtain rewarding and skilled employment in the future.”
David Hughes, chief executive of the Association of Colleges, said: "For too long, technical skills and education have been overlooked when investment in education is being considered, this announcement will make a significant and positive difference.
"This investment is a vote of confidence in colleges who are ready to work with employers to co-design the new routes, deliver the 900 hours per year and help more young people make a smooth and successful transition to work and to higher level learning."
And CBI director-general Carolyn Fairbairn said: "Businesses are delighted by the Government's announcements, which they and the CBI have long been calling for.”