The refreshed London Local Skills Improvement Plan (LSIP), led by BusinessLDN in co-leadership with the Greater London Authority, brings together insights from more than 2,000 employers, education providers and local partnerships across London. It sets out how businesses, colleges, universities and local leaders will work together between 2026 and 2029 to address skills shortages and respond to the growing impact of artificial intelligence and digital transformation.

The evidence highlights a significant challenge: while more than three-quarters of employers say advanced digital and AI skills are becoming increasingly important, these capabilities now represent the largest skills gap reported by London businesses. At the same time, employers are reporting reduced demand for some entry- and mid-level roles as automation and cost pressures reshape the labour market.

For West London, the findings reinforce the importance of investing in skills and employment support. As home to a £70 billion economy and one of the UK’s largest economic clusters, the sub-region faces increasing demand for workers with digital, technical and green skills, alongside ongoing challenges around unemployment and economic productivity.

Working alongside London’s other sub-regional partnerships, West London Alliance has developed a refreshed local annex to the LSIP, focused on nine priority sectors and two cross-cutting enablers that together account for around 64% of the area’s workforce. New priorities include construction, early years and life sciences, alongside an increased focus on AI and cybersecurity.

The London-wide plan identifies six key priorities for the next three years:

• Strengthen transferable, digital and AI, and green skills.
• Build clear, inclusive pathways into and across priority sectors.
• Expand modular, stackable and flexible training.
• Strengthen employer engagement.
• Increase access to work experience and employability support.
• Enhance strategic coordination and labour market insight.

The LSIP is already helping to strengthen links between employers and education providers, supporting more employer-informed curricula, new training programmes and specialist facilities, including the West London Retail Skills Hub at Westfield.

West London Alliance will continue working with employers, education providers and partners to help deliver these priorities, ensuring local residents can access the skills needed to succeed in a rapidly changing economy while supporting businesses to grow and thrive.

Read the West London Annex to the Local Skills Improvement Plan

Read the London Local Skills Improvement Plan