SFE Insight | Social Mobility Day

Sandy Begbie CBE FRSE, Chief Executive, Scottish Financial Enterprise

There are many issues that divide the main political parties at this general election, but one rare point of consensus is the need to invest in skills.

Politicians of all stripes recognise that our economy is no longer on the cusp of a digital revolution, we are in the midst of one. Investment in skills is vital if we are to seize the opportunities of this new emerging reality rather than be overcome by it. Only by aligning our skills and education system with this long-term trajectory for our economy can we truly reap the benefits of this new era.

This is one of the key selling points for Scotland’s financial and professional services industry. Our high-quality education system – from our state and independent schools through to world-class universities – creates incredibly strong human capital in Scotland and is a key pillar of Scottish Financial Enterprise’s sector growth strategy, which aims to increase the annual contribution of financial and professional services to the economy by £7billion GVA by 2028.

Yet investing in skills does not only benefit the economy - it also benefits society writ large. Education and training are a key driver of social mobility, helping to deliver better employment, better job satisfaction and higher wages.

That is why it is welcome to see that there is such agreement from our political leaders on the need to invest in skills. Only by improving access to high-quality education at every level – be it state and independent schools, colleges or universities – can we equip the next generation with the right tools to grow.

As an early school leaver who did not attend university, I know the challenges people must overcome when they lack the necessary qualifications or experience to get on. That is why I have taken such a personal interest in schemes such as Developing the Young Workforce, the Young Person’s Guarantee and Career Ready, which help young people get the experience they need to get on.

The financial services sector is a good example of an industry that not only relies on skills but can also be a major driver of social mobility. What was once viewed as a stuffy old boys’ club  is now a vibrant and diverse sector where skilled workers from all backgrounds can thrive. Breaking these stereotypes with young people from every background is key to our future success, and something that SFE champions through our engagement with schools, colleges and universities across Scotland.

The firms that make up Scotland’s financial services sector have recognised the economic and societal importance of social mobility. Ahead of Social Mobility Day on June 13, KPMG have, for instance, announced their intention to have 29 percent of partners from lower socio-economic backgrounds by 2030. Many other firms have similarly ambitious targets.

But business cannot do this alone and, while it is welcome that there is such political consensus around the need to invest in skills, we need to see concrete action from our leaders to support and not undermine education and training.

Scottish universities are facing a perfect storm of financial pressures, which both the Scottish and UK governments must take some responsibility for, with a decline in funding for domestic students intensified by a decrease in the number of international students due to UK visa restrictions. 

Similarly, political leaders should be wary of backing any measures that make Scotland’s schools less competitive and potentially limit access to the training and skills our workforce will need in the future. Should the Labour Party win the general election, for instance, it is vital they ensure their plan to levy VAT on private schools will not adversely impact an already stretched state school system or the UK's international competitiveness.

Only by securing and supporting Scotland’s world-class education system can we build a workforce with the right skills and reap the economic and societal benefits from that. While it is welcome that our political leaders recognise that fact, now is the time to turn that consensus into action.