The latest wave of Local Skills Improvement Plans (LSIPs) for 2026-29 has now been published by the Secretary of State for Education, marking a significant moment for England’s skills landscape. For the uninitiated, LSIPs are employer-led plans designed to strengthen the relationship between businesses and post-16 training providers (i.e., further and higher education), ensuring that the supply of skills genuinely reflects the needs of local economies.
Since 2023, Lichfields has worked closely with the Hampshire Chamber of Commerce – initially the Employer Representative Body (ERB) for the Solent, and now with a wider remit covering Hampshire and the Solent – to develop the original Solent LSIP , review progress in 2024 and 2025 , and (this year) refresh the LSIP to reflect the newly-formed Hampshire and the Solent Combined County Authority area .
Three years in, LSIPs have reshaped how regions think about skills and employer participation, and the role these play in driving economic growth. In a period defined by shifting priorities, changing local government boundaries and growing socio-economic pressures, LSIPs have become the one stable, employer-centred thread running through local skills delivery. Led by independent ERBs – often local Chambers of Commerce – they are positioned arm’s length of political cycles and provide continuity in a system that desperately needs it.
In this blog we reflect on what has been achieved so far, what we have learned through our work, and why we think the next phase of LSIPs matters more than ever.
The biggest gap isn’t a skill
Across Hampshire and the Solent, one insight that surfaced repeatedly was not a shortage of specific skills, but employers’ and people’s ability to navigate the skills system itself. Time and again, employers show willingness to engage; yet many simply do not know where to start, who to speak to, or what support is available to them. Business time pressures, squeezed margins and competing priorities make it difficult to invest in skills planning, even when the appetite is there.
Progress is being made locally, but the lesson is clear; navigation is the foundational challenge. Without addressing this, even the best provision will struggle to reach the businesses and people it is designed to support.
A second, persistent challenge is lack of awareness. Historically, young people gained early exposure to work through entry-level roles, or by following familiar pathways. However, as the economy has diversified, these traditional routes into employment have become few and far between.
Low levels of awareness and deep-rooted perceptions continue to hold many young people back. The disconnect between the classroom and the world of work means that parents and teachers often lack visibility of modern career opportunities, making awareness not a communications issue but a structural one. Without it, aspiration stalls and so does progression.
One of the most striking shifts seen over the past three years (at least within Hampshire and the Solent) has been the move from employer engagement to genuine employer participation. This is more than semantics; it has seen employers move from being “buyers” of skills to active “investors” in the ecosystem, signalling a significant cultural shift.
By becoming active participants, employers are now co-designing curricula, embedding training into day-to-day operations and committing to long-term collaboration. Where this shift has taken hold, it has been transformational. It builds trust, strengthens value exchange and creates provision that genuinely reflects industry needs.
Why this matters?
The most important lesson from our work with the Hampshire Chamber of Commerce is that the skills ecosystem must serve people, not just sectors of the economy. This is especially urgent given rising economic inactivity and the sharp increase in young people not in education, employment or training (NEETs). Recent figures show NEET levels have now surpassed one million, the highest since the financial crisis in the 2000s.
Running to 217 pages, the Milburn Review diagnostic report sets out the scale of the challenge, and highlights how limitations across health, education and welfare have interacted with labour market changes to drive up NEET levels. Access to housing is also important, as we discuss elsewhere . The report concludes that Britain faces “a deeply entrenched problem that is getting worse and a system that has been trying but failing to deal with it”.
The Review does not yet set out what government should do; that will come later this year. But LSIPs already play a critical role in raising awareness, identifying sector-specific and economy-wide skills gaps, and generally shaping the direction of travel. Youth engagement is essential, but so is the wider re-engagement advocated by the Get Britain Working White Paper .
Within Hampshire and the Solent region, the 2026-29 LSIP sets out a roadmap built around the following four priorities:
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Priority 1: Improve awareness, navigation and access to the skills ecosystem;
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Priority 2: Strengthen employer participation;
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Priority 3: Build a responsive and inclusive ecosystem; and
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Priority 4: Support pathways, progression and workforce transition.
These priorities reflect the lessons learned so far, and the need for a system that works for all residents, not just those closest to opportunity.
The big lesson
After three years of delivery, the conclusion is simple. Meaningful skills transformation isn’t about fixing individual courses or qualifications; it’s about building a strong ecosystem that is flexible enough to work for everyone.
Devolution (i.e., as outlined by the English Devolution White Paper , and the wider ambitions that have been trailed by the new Prime Minister, Andy Burnham) has the potential to be genuinely game changing. However, this can only be achieved if skills remain central and people are at the heart of the wider ecosystem. LSIPs are now the bridge between employers and devolved authorities (existing and forthcoming), and provide the stability needed to shape long-term delivery.
As LSIPs enter their next chapter, all areas will need clear evidence and coherent delivery structures to turn ambition into meaningful change. This next phase will demand even deeper collaboration, sharper insights and a skills ecosystem capable of responding to both economic priorities and human realities. LSIPs are now central to this mission.
Footnotes
[1] Hampshire Chamber of Commerce (2023), Solent Local Skills Improvement Plan (Solent LSIP) [Link]
[2] Hampshire Chamber of Commerce (2024), Solent LSIP, 2024 Progress Report [Link]
[3] Hampshire Chamber of Commerce (2025), Solent LSIP, 2025 Progress Report [Link]
[4] Hampshire Chamber of Commerce (2026), Hampshire and the Solent LSIP 2026-2029, A unified skills plan for an integrated region [Link]
[5] Department for Work & Pensions (2026), Young people and work: Diagnostic report [Link]
[6] See Lichfields blog: Milburn, NEETs and housing: the connection that counts [Link]
[7] HM Government (2024), Get Britain Working White Paper [Link]
[8] Ministry of Housing, Communities & Local Government (2024), English Devolution White Paper: Power and partnership, foundations for growth [Link]
