Value distinction between HE and FE is ‘bad economics’, warns Vince Cable

The value distinction between Higher and Further Education is “outdated” and bad for the economy, according to Vince Cable, Secretary of State for Business, Innovation and Skills (BIS).

Speaking at the Cass Business School in London today, Mr Cable told how his Department will play a central role in improving links between education and the economy.

“Bringing HE, skills and enterprise together under the one departmental roof is central to the ‘BIS dividend’,” he said.

“My priorities are an increased emphasis on lifelong learning, stripping out some of the bureaucracy around FE and making sure that the outdated value distinction between blue collar Apprenticeships, and Further Education on one hand and university on the other is disposed of for good.

“In the last few weeks I found scope within my Department to refocus £200 million in capital spending in FE colleges and 50,000 extra Apprenticeships. Indeed, it is shocking that we only have 250,000 apprenticeships to start with.

“Education and learning are of course desirable in their own right. Education for education’s sake – learning how to learn – benefits the economy in the long term. Philistinism is bad economics. It is also fundamentally unacceptable.”

Mr Cable outlined plans for an audit over the weeks ahead to review business support, HE, FE, science and research over the last decade. He also committed to axing a further 20 BIS quangos within a year.

He said: “We had 74 last year, 13 are now being got rid of, merged or having their funding cut. I aim to merge or abolish another 20 or so within a year – that’s a third of the rest. And we will keep scrutinising the others – if they fail to perform or the world has moved on, I will take action.”

Jason Rainbow

(Pictured: Vince Cable, Secretary of State for BIS)