The Economy, Culture and Skills Committee met to discuss the London Growth Plan, focusing on the Inclusive Talent Strategy and Backing our Businesses. Key discussions revolved around improving adult education commissioning, addressing skills gaps, supporting young people into employment, and enhancing financial support for small and medium-sized enterprises (SMEs). The committee also reviewed the progress and impact of various initiatives aimed at boosting London's economy and supporting its residents.

London Growth Plan: Inclusive Talent Strategy and Backing our Businesses

The committee engaged in a detailed discussion regarding the London Growth Plan, with a particular focus on the Inclusive Talent Strategy and the Backing our Businesses initiatives. Howard Dawber OBE, Deputy Mayor for Business and Growth, alongside Anne-Marie Soyinka, Assistant Director of Skills and Employment Policy, and Alex Conway, Assistant Director of Economic Development and Programmes from the Greater London Authority (GLA), and Leah Davis, Director of Policy and Impact at London Partners, provided insights into the plan's progress and future priorities.

A significant portion of the discussion centred on the proposed shift from a learner-led to an employer-led model for adult education commissioning. Howard Dawber explained that while the GLA has delegated funding for adult skills, it comes with significant restrictions. The ongoing negotiation with the Government for a three-year integrated settlement aims to provide more flexibility in funding allocation and planning. The Inclusive Talent Strategy is actively developing sector talent boards, bringing together employers to identify skills gaps and influence commissioning priorities. This approach is also being used to influence national programmes, including apprenticeship funding.

The committee explored the effectiveness of the £147.2 million allocated to the Inclusive Talent Strategy, which includes £97 million for the London Talent Pathways Fund, £14 million for skills infrastructure, £30 million for skills bootcamps, and £4.7 million for construction skills. Measuring the impact of these initiatives is ongoing, with a focus on job creation and filling, with a target of 150,000 good new jobs by the end of the mayoral term. A good job is defined as meeting the London Living Wage and adhering to good work standards, including career progression and rights at work, excluding zero-hours contracts and gig economy jobs. The committee was informed that approximately 35,000 jobs have been created since the Growth Plan's launch in February 2025. A comprehensive review of the Inclusive Talent Strategy's impact is expected in October 2026.

The discussion also touched upon the challenges faced by high-growth SMEs in accessing scale-up funding, with concerns that companies are considering relocating due to funding availability elsewhere. The London Growth Plan includes initiatives like Funding London, a £20 million fund, and an additional £100 million aimed at supporting SMEs. Funding London, a GLA-managed company, has a 20-year track record of investing in high-growth SMEs, having invested over £90 million of EU and UK grant funding, alongside £25 million in reinvested returns. This has enabled over £1 billion in investments for more than 800 SMEs, including two unicorns, and has supported over 13,000 jobs. The committee noted the ongoing negotiations with the British Business Bank for a new SME debt fund, aiming to match the GLA's £20 million investment with another £20 million, potentially creating a £70 million fund over five years.

The role of Grow London Global in supporting scale-up businesses to expand into international markets was highlighted, with a focus on boosting the programme's impact and outcomes. Since the Growth Plan's inception, the programme has delivered an additional £340 million in Gross Value Added (GVA) to the capital. Trade missions, including those to Africa and Japan, are being enhanced with immersion events to better prepare businesses for international markets and to attract more diverse businesses.

The committee also discussed the Mayor's AI task force, with an allocated budget of £20 million. This task force will focus on the medium-term impacts of AI on the job market, aiming to help individuals and businesses transition to new roles. The task force will comprise experts from various sectors and will inform the GLA's AI strategy, working in parallel with the Government's strategy. The £20 million budget will support training programmes and other actions related to AI.

The London Quantum Technology Cluster, established with an initial investment of £0.5 million from the UK Shared Prosperity Fund, has made significant progress. The cluster, a partnership between University College London, King's College London, and Imperial College London, along with other institutions like the National Physical Laboratory, has supported 24 enterprises and 21 organisations. The focus is on practical applications of quantum technology, with examples including the use of quantum accelerometers on the London Underground and potential applications in new diagnostic techniques for the NHS. The GLA is also seeking further investment for innovation clusters, with a £30 million fund from UK Research and Innovation being allocated to mayoral strategic authorities.

Finally, the committee examined the Greater London Authority's (GLA) role in delivering the Connect to Work programme, which aims to reduce unemployment and economic inactivity. London is delivering 50% of the national outcomes for Connect to Work and aims to support 43,000 individuals by April 2029. The GLA will become the accountable body for this programme from April. The London Youth Guarantee trailblazers are also being monitored, with a target of supporting 5,000 young people through the programme by March. The committee also discussed the importance of SMEs accessing public sector procurement, with the London Anchor Institutions Network having placed £3.4 billion of contracts with SMEs since its inception. The GLA group has set a target of 20% of contracts to be awarded to SMEs, contributing to the overall London Anchor Institutions Network target of 30%.

The meeting also included discussions on the role of community banks, with representatives from credit unions highlighting their advantages over mainstream banks, including a personal service, a focus on financial inclusion, and reinvestment of profits into the community. They noted that financial exclusion remains a significant problem in London and the UK, with many individuals struggling to access affordable credit and savings. The credit union sector is working to increase awareness and expand its digital offerings, while also facing challenges related to scale and regulatory frameworks. The committee explored potential collaborations between credit unions and the Mayor's office to promote payroll savings and support green lending initiatives.

The committee also heard evidence on the challenges faced by unpaid carers in London, including financial hardship, isolation, and a lack of adequate support services. The discussion highlighted issues with the identification of carers, the complexity of accessing benefits and home care, and the need for more targeted support, particularly for young carers and those from diverse communities. The importance of peer-to-peer support and the potential for a London-wide carers' campaign were also emphasized. The committee acknowledged the significant contribution of unpaid carers to the economy and the need for greater recognition and support.

The meeting concluded with the committee noting the report and discussions, and delegating authority to the Chair to agree any output arising from the discussion. The date of the next meeting will be determined by the London Assembly's Annual Meeting in May 2026.