Chancellor Champions Youth Employment with New Job Support Initiatives

The government has unveiled a significant initiative aimed at creating and sustaining 130,000 jobs across the United Kingdom, leveraging the National Wealth Fund to enhance local apprenticeship services and restore the Union Learning Fund. This strategic move is designed to connect a greater number of young people with employment opportunities, while also providing essential training to help individuals acquire new skills.

Utilising the National Wealth Fund for Job Creation

The Chancellor has revealed plans to harness the existing capital of the National Wealth Fund, with the goal of facilitating the creation and support of 130,000 jobs by 2030. This fund is poised to back employment opportunities in a variety of sectors, including artificial intelligence, technology, defence, and clean energy. This initiative reflects a broader commitment to fostering good jobs and sustainable growth across the economy.

Rolls-Royce’s Major Investment in Manufacturing

In a significant boost for the UK’s advanced manufacturing sector, the Chancellor has announced a landmark investment of £300 million by Rolls-Royce to enhance its manufacturing and engineering facilities nationwide. This investment underscores the company’s dedication to the UK’s manufacturing landscape, with funds allocated to various factories throughout the country.

In Derby, Rolls-Royce is investing over £140 million in new engineering and manufacturing services facilities, which will support more than 10,000 employees and facilitate future growth. Meanwhile, in Bristol, the company is committing over £90 million to upgrade its facility, which is home to over 3,500 employees, including many highly skilled engineers. Additionally, a £43 million investment in Inchinnan, Glasgow, will introduce state-of-the-art machinery for manufacturing new engine components, while a further £19 million in Rotherham will enable the Advanced Blade Casting Facility to double its output of turbine blades by 2030.

Enhancing Local Apprenticeship Services

Local leaders are uniquely positioned to understand the needs of their communities and to effectively connect young people with small employers to create tailored apprenticeship opportunities. Following the Budget 2025 announcement of government funding to pilot apprenticeship brokerage in certain Mayoral Strategic Authorities, the Chancellor has now extended this funding to all 14 existing Mayoral Strategic Authorities with directly elected mayors, enabling them to provide local apprenticeship services throughout England, starting in Spring 2027.

This expansion is part of the government’s commitment to double the number of areas matching young individuals with local businesses, supported by an additional £100 million over two years. Led by mayors and informed by local labour market needs, this initiative is expected to produce thousands of new youth apprenticeships, facilitating career opportunities for many young people.

Restoring the Union Learning Fund

Furthermore, the Chancellor has confirmed an annual allocation of £15 million to reinstate the Union Learning Fund in England. This fund aims to assist working individuals in acquiring new skills, advancing in their careers, and adapting to technological changes, including those brought about by artificial intelligence.

The Union Learning Fund has historically generated approximately 180,000 learning opportunities each year and will leverage the trusted relationships that trade unions have with workers to facilitate access to training through employers and existing skills programmes. The fund is designed to empower British workers to effectively engage with AI rather than be left behind by it.

Importantly, employees will not need to be union members to benefit from this initiative, which will offer support ranging from essential English, maths, and digital skills to training for roles in burgeoning industries such as advanced manufacturing. The Budget will provide further details on how the expansion of apprenticeship brokerage and the restoration of the Union Learning Fund will be financed through savings identified by the Department for Work and Pensions.