Rachel Reeves blasted for £283m skills package - 'too little too late'

Around £100million of the funding will be used to expand construction training capacity across colleges in England.

Labour said the move will help reduce long waiting lists for building courses.

This comes as data released on Tuesday showed unemployment rose again to 5.1 per cent, with Britain's young being hit hardest.

Ministers said the funding will also support a target of training 60,000 additional construction workers.

Those workers are expected to help deliver 1.5 million new homes before the end of the current Parliament.

Remaining funding will be devolved to metro mayors and regional leaders.

They will be given discretion to allocate the money in line with local skills priorities.

The announcement comes as colleges prepare for a projected increase in student numbers.

Government estimates that an additional 67,000 16 and 17-year-olds will enter post-16 education by 2028.

Ministers said the package reflects rising demand for domestic skills as employers report shortages across multiple sectors.

Michelle Lawson, director at Fareham-based Lawson Financial, told Newspage that the investment does not match the scale of current challenges.

She said: "More hot air from the 'Too Little Too Late' party.

"The problems we have are now, not 2028 or 2030."

Ms Lawson said apprenticeships remain limited while rising costs leave employers unable to take on trainees.

She said many businesses are struggling to fund training amid higher taxes and operating expenses.

Rohit Parmar-Mistry, founder of Burton-on-Trent firm Pattrn Data, questioned the assumptions behind the policy.

He said: "Blaming the housing crisis on a lack of workers is a convenient fiction."

The large developers have accumulated land with planning permission but delayed building.

Mr Parmar-Mistry said developers restrict supply to protect profit margins.

"Why would they rush to build 1.5 million homes?"

He said: "Flooding the market would tank prices and obliterate profits."

Further concerns were raised about whether the sector can attract enough new workers.

Kundan Bhaduri, entrepreneur and landlord at London-based The Kushman Group, questioned the feasibility of the target.

He said: "Ministers are promising to train 60,000 additional construction workers to deliver 1.5 million homes."

"That sounds impressive until you realise this represents roughly 40 workers per thousand homes."

Mr Bhaduri said the industry is already losing experienced staff to early retirement.

He also cited regulatory pressure as a factor driving workers away from construction.

Mr Bhaduri questioned whether school leavers would choose building careers in the current climate.

Competition from other sectors was also highlighted as a challenge.

Colette Mason, an AI consultant at London-based Clever Clogs AI, said technology projects are drawing workers away.

She said: "Data centres are hoovering up construction workers faster than we can train them.

"They're paying better."

Ms Mason said 94 data centre developments are currently planned across the UK.

She said the projects are valued at £36billion, and that they require the same electricians, contractors and site managers needed for housing.

Questions were also raised about coordination across Government departments.

Kate Underwood, founder of Southampton-based Kate Underwood HR and Training, said policymaking remains fragmented.

"In the last few weeks, we've had two different departments chucking money at basically the same problem."

"It still feels like nobody's sharing a calendar, never mind a plan," she added.

She said separate schemes focused on colleges and young people outside work serve similar aims, and better coordination is needed between jobcentres, colleges and local employers was needed.

Ms Underwood said: "It's only joined up if courses match real local vacancies.

"Placements also need to be workable for small businesses."

She warned that a lack of coordination could undermine the impact of the funding, and that competing requirements and timelines risk creating new silos, while departments could end up competing for the same pool of potential recruits.

The Treasury have been contacted for comment.