The Transport Committee is calling for action to protect the UK’s transport manufacturing capabilities

The Transport Committee has called on the Government to seize “once-in-a-generation” opportunities to secure the future skills pipeline of the UK’s transport manufacturing sector, amid growing shortages and a shift to cleaner technologies.

In a new report published today, MPs warn that manufacturers across the aerospace, automotive, rail and marine industries are struggling to access the skilled workers they need at a time when the shift to zero and advanced engineering is fundamentally reshaping job requirements.

The Committee says the UK’s long-term strength in manufacturing cars, buses, planes, trains and ships is at risk unless vocational training, apprenticeships and workforce development are better aligned with the needs of modern industry.

Evidence from the inquiry highlighted a huge skills gap across many sectors, with witnesses stressing that the move towards electric vehicles, alternative fuels and digital systems has changed the nature of manufacturing roles. The MPs concluded that current training methods are slow to adapt and fail to attract enough young people to what should be “rewarding and fulfilling” jobs.

To address this, the report urges the Department for Transport to carry out a comprehensive review of how the UK’s vocational training system is meeting the needs of transport manufacturers. Findings should then be shared across government to inform changes in skills trends.

The Committee is also asking Skills England to consult on the introduction of a “knowledge passport” which would formally recognize transferable skills, making it easier for workers to move between roles and divisions within transport manufacturing.

While acknowledging the Government’s intention to return funding to young workers, MPs have expressed concern that the removal of apprenticeship funding at Level 7 for people aged 22 and over could disrupt the supply of highly skilled and experienced workers. The report supports calls, echoed by the Education Committee, for level 7 funding to be restored to all eight growth areas identified in the Government’s Modern Industry Strategy.

The report also examines the apprenticeship tax system. While manufacturers broadly support the tax’s goal, MPs say restrictions on how the funds can be used limit employers’ ability to invest effectively in skills. The Committee recommends greater flexibility under the Growth and Skills Levy and suggests that the Government consider linking the availability of levy funding to employers’ progress against their diversity targets.

Addressing gender inequality, the report highlights the under-representation of women in the transport industry and calls for greater accountability. It recommends that employers receiving levy funding report annually on the take-up of people with caring responsibilities or those returning from work leave, and that the Government review progress on its target of women making up 35 per cent of the advanced manufacturing workforce by 2035.

Ruth Cadbury, chairperson of the Transport Committee, said the sector is at an important time.

“The UK’s record in transport manufacturing is something we should be proud of, but the sector faces many challenges,” he said. “We need to leverage the talent we already have while making sure the next generation sees this as a field full of opportunity.”

He also added that outdated training methods risk pushing young people away, as is the need for skills in electric vehicles and other fuel sources. “If we don’t take action now, other nations will take the lead while we stand still,” he warned.

The report concludes that without urgent changes to training, funding and workforce mobility, the UK risks missing out on growth opportunities in the transport industry, particularly in net zero technology, at a time when global competition is increasing.