The United Kingdom Government announced a historic $4 billion investment to expand training programs aimed at equipping British workers with skills to fill critical labour market gaps, signaling a shift toward reducing dependence on foreign workers.

The initiative, unveiled Tuesday by the Department for Education, will create 120,000 new training opportunities in high-demand sectors such as construction, engineering, health and social care, and digital technology.

The move comes as part of Prime Minister Keir Starmer’s Labour government’s broader strategy to address rising economic inactivity and respond to political pressures on immigration.

Official data indicates 21.4% of working-age Britons are currently jobless and not seeking employment, a figure that has climbed steadily since the COVID-19 pandemic.

The government’s plan aims to “refocus the skills landscape towards young, domestic talent,” according to the Department for Education.

In tandem, the government revealed a 32% increase in the immigration skills charge, a levy on firms hiring foreign workers, expected to fund up to 45,000 additional training places.

This follows recent policy changes tightening citizenship rules and limiting skilled worker visas to graduate-level roles, alongside mandates for companies to prioritize local training.

The announcement arrives amid growing political scrutiny, fueled by the recent electoral gains of the anti-immigration Reform UK party.

Starmer has declared an end to “open borders,” emphasizing self-reliance in the labour market.

However, businesses have raised concerns, warning that stricter immigration policies could harm the economy without a robust overhaul of the UK’s skills training framework.

Many firms report ongoing challenges in recruiting sufficient local talent to meet demand.