However, the Federation of Master Builders says that the future of the Construction Industry Training Board remains unanswered.

Prime minister Keir Starmer said: “Our skills system is in a mess, which is why we are transforming our approach to meet skills needs over the coming decades.

“They will help to deliver our number one mission as a government, to kickstart economic growth, by opening up new opportunities for young people and enabling British businesses to recruit more home-grown talent.

“From construction to IT, healthcare to engineering, our success as a country depends on delivering highly skilled workforces for the long term. Skills England will put in place the framework needed to achieve that goal while reducing our reliance on workers from overseas.”

The government expects Skills England to bring together central and local government, businesses, training providers and unions to meet the skills needs of the next decade and provide strategic oversight of the post-16 skills training regime.

Construction is cited as a particular priority. The government said Skills England will work with the Migration Advisory Committee to help reduce reliance on overseas workers.

The Skills England Bill will transfer functions from the Institute for Apprenticeships & Technical Education (IfATE) to Skills England. 

Skills England will maintain a list of levy-eligible training to ensure value for money and that the mix of government-funded training available to learners and employers aligns with the identified skills needs.

Former co-operative group chief executive Richard Pennycook, the lead non-executive director at the Department for Education, has been named interim chair of Skills England. A permanent board, chair and chief executive will be appointed.  

Federation of Master Builders chief executive Brian Berry said it sounded like good news, but it remained unclear how the Construction Industry Training Board would fit into the new regime.