Columnist

Why collaboration is key to a stronger economy

The publication of the June 2025 progress report on the North East Local Skills Improvement Plan (NELSIP) marks a key milestone for our region. 

As chief executive of the North East Automotive Alliance, and an active supporter of NELSIP since its launch in 2023, I have been encouraged by the real and measurable progress made in addressing the region’s technical skills challenges.

This report reflects the collective effort of many – including employers, education providers and local authorities – who have worked together to ensure our workforce is equipped with the skills needed to drive future economic growth.

It demonstrates we are moving in the right direction, with tangible results already being achieved.

The NELSIP sets out the skills requirements of employers, while the North East Local Skills Improvement Fund (NELSIF) provided £3.6 million to enable further education providers across local areas to respond collectively to the priorities set out in the NELSIP. 

To date, more than 600 new level three and higher technical training starts have been supported through the NELSIF, alongside the creation of 42 new technical courses. 

They are helping to meet current and emerging demand in key sectors including advanced manufacturing, construction, digital and health.

The NELSIP has also helped inform other programmes like MADE North East, a £14.67 million initiative led by Nissan, to provide open-access training in industrial innovation for the advanced manufacturing sector, including electric vehicles. 

Digital initiatives such as Tech Talent Engine and Digital Up North are creating new pathways into tech careers and helping local people and businesses make the most of digital opportunities. 

Furthermore, in Sunderland and South Tyneside, UK Shared Prosperity Fund-backed pilot projects targeting inclusivity and apprenticeships have supported the recruitment of 31 apprentices, many into small and medium-sized employers.

These types of employer-led pilots show the value of flexible, place-based investment in skills.

What stands out to me in this report is how NELSIP has aligned with broader regional strategies, including the North East Combined Authority Local Growth Plan and the New Deal for North East Workers. 

The plan has always been about more than courses or numbers – it is about creating a skills ecosystem that is responsive, collaborative and focused on outcomes for people and businesses.

As a region, we now need to look forward. 

From October 1, the North of Tyne and North East LSIP regions will become one – aligned to the North East Combined Authority region. 

It is essential all relevant strategies are aligned and that employer representative bodies, employers, providers and the North East Combined Authority continue to address the systemic challenges set out in the NELSIP. 

The North East has shown what is possible when we work together with purpose. 

With continued collaboration and sustained focus, we can create a stronger and more resilient economy built on skills, opportunity and regional pride.

Paul Butler is chief executive of the North East Automotive Alliance

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