A new report from the Social Market Foundation (supported by University Alliance), Skills Sidelined, makes a clear and timely case: if the UK is to tackle workforce shortages in critical sectors, government must empower universities to play their full role in delivering high-level skills.

From healthcare to construction and digital technology, demand for degree apprenticeships and other advanced training already far outstrips supply — with more than 500,000 skill-shortage vacancies across the country. Universities are uniquely placed to help close this gap, working with employers to design courses that combine rigorous academic study with real-world workplace training.

But as the report highlights, bureaucracy, funding constraints and limited involvement in policy discussions are holding universities back. Cutting red tape and aligning incentives would unlock capacity, widen access to degree apprenticeships, and ensure that learners at every stage can progress into high-value careers.

For the Oxford to Cambridge region, the stakes are especially high. As the UK’s most significant innovation supercluster, the Corridor depends on a steady pipeline of highly skilled workers across life sciences, advanced manufacturing, digital and green technologies. Backing our universities to deliver these skills is not just good policy — it is central to unlocking the £78bn growth prize that the region can deliver by 2035.

The Arc Universities Group strongly supports the SMF’s call for reform. Universities are ready to scale up provision, but they need government to match ambition with the right policy framework.

Read the report

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