Rachel Reeves hopes to kickstart the economy and save Labour’s plan to build 1.5m new homes by training up to 60,000 bricklayers, electricians, engineers and carpenters over the next four years.
The £600 million move is designed to help fill 35,000 job vacancies in construction, amid warnings revealed by The Independent that the government’s flagship scheme is unachievable due to a shortage of workers.
It comes as the chancellor tries to head off criticism of her stewardship of the economy as she unveils what are expected to be the deepest cuts to government departments since austerity in her spring statement on Wednesday.
On Saturday, Ms Reeves warned Labour could not “tax and spend our way to higher living standards and better public services” in an interview with the BBC.
She is facing a £20 billion hole in the public finances as she scrambles to meet her own fiscal rules following higher-than-expected borrowing and disappointing economic growth.
The government has already slashed spending on overseas aid in half to boost the defence budget and controversially announced plans for sweeping cuts to welfare – totalling more than £5 billion – but the chancellor expected to need to find billions more on Wednesday.
Only health, schools and defence are set to be protected from further pressure on their budgets.
Announcing her plans for the construction sector, Ms Reeves said they were designed to “get Britain building again… but none of this is possible without the engineers, brickies, sparkies, and chippies to actually get the work done, which we are facing a massive shortage of”.
“We’ve overhauled the planning system that is holding this country back, now we are gripping the lack of skilled construction workers,” she added.
Under the plans, around £100 million will go to the 10 new technical excellence colleges, while £165 million will help other colleges deliver more construction courses.
Employers, many of whom are angry at Ms Reeves over the hike in national insurance they will have to pay for every employee from next month, will share a pot worth £80 million to deliver training.
Skills bootcamps will receive £100 million to expand their services for new entrants to the industry, returners or those looking to improve their skills.
A new construction skills mission board will be co-chaired by the government and Mark Reynolds, the executive chair of construction consultancy Mace.
Education secretary Bridget Phillipson said: “Skills are crucial to this government’s mission to grow the economy under our Plan for Change, and nowhere is that clearer than in the construction industry.
“We are being held back by the large-scale skills shortages in the construction sector which is a major barrier to the delivery of the growth mission.
“These measures will break down barriers to opportunity for thousands of young people, helping them to thrive in – and build – their local communities.”
