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The government has launched its promised new training initiative called Skills England which will be chaired by former Co-op boss Richard Pennycook.

In a statement, the Department for Education said: 鈥淪kills England will bring together central and local government, businesses, training providers and unions to meet the skills needs of the next decade across all regions, providing strategic oversight of the post-16 skills system aligned to the Government鈥檚 Industrial Strategy.鈥�

It said that between 2017 and 2022 skills shortages in this country doubled to more than half a million, and now account for 36% of job vacancies.

Prime minister Keir Starmer said: 鈥漁ur skills system is in a mess, which is why we are transforming our approach to meet skills needs over the coming decades.

鈥淔rom construction to IT, healthcare to engineering, our success as a country depends on delivering highly skilled workforces for the long-term. Skills England will put in place the framework needed to achieve that goal while reducing our reliance on workers from overseas.鈥�

>> See also: Labour unveils plans to unblock prison building and force firms to train domestic labour force

The organisation will identify the training for which the growth and skills levy will be accessible 鈥� a reform, the government said, which will give businesses more flexibility to spend levy funds on training for the skills they need.

Skills England will be established in phases over the next nine to 12 months with this week鈥檚 Skills England Bill intended to transfer functions from the Institute for Apprenticeships and Technical Education to the new group.

Starmer鈥檚 government has pledged to build 1.5m homes over the next five years.

However, there has been concern in the industry that a lack of skilled labour may hinder the government鈥檚 housing and infrastructure goals.

Patricia Moore, managing director at Turner & Townsend, writing for 好色先生TV today, said: 鈥淭he biggest risk to the government鈥檚 agenda is that construction may lack the necessary capacity.

鈥淲hat we are seeing as a business is that not only do we need more people in the sector, we need them to have a broader range of skills than ever before.鈥� 

Noble Francis, economics director at the Construction Products Association last week said the availability of skilled construction labour, along with production manufacturing capacity, could be a 鈥榢ey constraint鈥� on the government鈥檚 ability to hit the homes target.

He said: 鈥滱s housebuilding recovers over the next few years, these may emerge as the key constraints given that a significant rise in UK skilled labour and product manufacturing requires upfront investment (time and money) for a long-term return.鈥�

Shazia Ejaz, director of campaigns and research at the The Recruitment and Employment Confederation, said: 鈥淏y working with the Migration Advisory Committee, Skills England can help reduce reliance on overseas workers.

鈥淏ut public policy must find a balance between helping domestic talent to shine while accepting that takes time. So along with today鈥檚 announcement we want to hear more from the government on how they will create a fair and flexible immigration system to meet the needs of business.鈥�

The 好色先生TV the Future Think Tank - 好色先生TV鈥檚 own in-house editorial research hub - has been looking at the issue of what has happened to construction skills capacity since the government ended freedom of movement between the UK and the EU three years ago.

Our in-depth report, to be published in September at the in London, will analyse exactly how the new points-based immigration system is working for construction and deliver recommendations for how the new Labour government might look to reform it to drive economic growth.