London Councils and the Mayor of London have unveiled a new Inclusive Talent Strategy, backed by a £147.2 million investment aimed at transforming the capital’s skills system and supporting

thousands more Londoners into good jobs.

The announcement marks a major milestone in delivering the London Growth Plan, a joint initiative between the Mayor and London Councils that brings together boroughs, businesses, and trade unions to build a fairer, more inclusive economy.

The Mayor’s £147.2 million commitment will kickstart a “skills revolution” across the city—helping Londoners gain the expertise needed to thrive in a fast-changing economy while giving employers access to the skilled workers they need. The funding is expected to unlock at least 150,000 high-quality jobs.

This new approach builds on previous employment initiatives such as Connect to Work and the £60 million Get London Working Trailblazers, which have already helped thousands into employment through partnerships with boroughs and training providers.

For the first time, the Inclusive Talent Strategy places employers at the heart of London’s skills system—bridging the gap between what businesses need and what Londoners are trained to do. In 2024, over 45,000 job vacancies were reported as “hard to fill” due to skills shortages.

“This is about making skills the engine of growth and opportunity in London,” said the Mayor. “We want every Londoner—no matter their background—to have the chance to succeed in this new economy.”

The strategy also aims to prepare Londoners for the twin challenges and opportunities of the AI revolution and the transition to net zero. With artificial intelligence reshaping industries, the Mayor has pledged to ensure that Londoners can gain the digital and creative skills needed to seize new, higher-paid roles emerging across sectors.

A key focus will be on supporting the 250,000 Londoners who are economically inactive but want to work. By better linking skills and employment services with health, childcare, housing, and transport, the plan seeks to remove barriers faced by young people, disabled residents, and those with long-term health conditions.

New City Hall research highlights the potential economic impact of greater inclusion. If Black and minority ethnic Londoners had equal access to good jobs, an additional 290,000 people could enter the workforce—unlocking £17.4 billion in extra economic benefit through higher wages.

Tackling inequality and promoting diversity remain central to the Mayor’s vision. The Inclusive Talent Strategy positions inclusion not only as a moral imperative but as a vital driver of productivity, growth, and innovation across the capital.

Cllr Claire Holland, Chair of London Councils, said: 

“The Inclusive Talent Strategy sets out our ambition for how partners across London will work together in new ways to create real opportunities for Londoners facing the biggest barriers to work – including young people starting out, disabled residents, and those with long-term health conditions. 

“Boroughs and sub-regional partnerships play a crucial role in providing skills, careers and employment support, and we're proud to integrate this with health services in our communities. The new strategy also better aligns skills training with employer needs and supports more inclusive recruitment - ultimately boosting incomes and helping make London a fairer place to live and work.” 

The Mayor of London, Sadiq Khan, said: 

“London’s economy cannot achieve its potential until all Londoners are achieving their potential. That’s .why I’m proud to be announcing this funding to radically reform and transform our skills system in the face of a fast-changing economy, ensuring all Londoners are equipped for the AI revolution. 

“Londoners will either be left behind by AI or seize its huge potential. That is why I have launched my Inclusive Talent Strategy in partnership with London Councils to ensure Londoners are equipped with the skills to harness the benefits of AI for higher-paid jobs. I know closing the skills gap is a generational challenge and this strategy is an important start, creating a truly diverse pipeline of talent across the capital.

“Businesses will be able to recruit the talented people they need, because investment will be targeted at the courses which produce them. Ensuring Londoners, no matter their background, have the opportunity to get the skills they need to get a good job and a secure career.

“The principle of inclusive growth set out in the London Growth Plan isn’t just a statement of values; it’s also the only route to long-term prosperity for our city and the people who call it home. Every one of our goals – getting our productivity growth back on track, helping to create 150,000 good jobs, and raising the income of the poorest Londoners by 20 per cent - is anchored in our commitment to building a fairer economy that works for everyone. No Londoner can be left behind.”

Muniya Barua, Deputy Chief Executive at BusinessLDN, said: 

“This new strategy rightly focuses on unlocking the full potential of more Londoners so that the capital can fire on all cylinders as an engine of growth for the whole UK.

“The emphasis on working in partnership with employers to develop, recruit and retain talent is particularly welcome – aligning closely with the approach set out in the London Local Skills Improvement Plan. The commitment to launching a new London jobs and careers service – something we have long called for – will also help more people access the advice they need to find a path that is right for them. 

“This strategy has a vital role to play at a time when London’s unemployment rate is above the national average, skills gaps are holding businesses back and the number of young people not in education, employment or training is on the rise. We look forward to working closely with the Greater London Authority to ensure it delivers for Londoners and the capital’s businesses.”

Michael Morley OBE, Group Director – London, Jobs and Careers Service, Operations at the Department for Work and Pensions, said: 

“Our Inclusive Talent Strategy and the Get London Working Plan provides us with a unique and powerful opportunity to unite as a whole system to integrate employment, skills, and health support for Londoners. 

“Unleashing the untapped talent across our city and enabling all Londoners, irrespective of background and circumstance benefits from the city’s growth and prosperity and we in DWP, are committed to play our active part to deliver real change for Londoners.” 

Stephen Evans, chief executive of Learning and Work Institute, said: 

“It is right to focus on how to better support employers to grow London’s economy and ensure Londoners can access those opportunities. Getting there will require a laser like focus on joining up services like health, skills and work, making help easy to access, and extending support to those that too often miss out today. 

“That will require concerted action from London’s government, the UK government, employers and civil society, and this strategy provides a valuable route map and set of priorities for doing this. The prize from delivering it is a win-win for London’s people, employers and economy.”

Elly Hoult, Chief Operating Officer and Deputy CEO of not-for-profit housing association, Peabody, said: 

“This is a positive step towards making sure training meets the real needs of employers, especially in sectors like housing and construction where skills shortages are a real challenge.

“At Peabody, we’ve seen how important it is to give people the right skills and support to get into good jobs. There is a wealth of untapped talent in our communities, and by helping more people from different backgrounds access training and real opportunities, we can unlock that potential. This not only changes lives but helps build a stronger, more diverse and resilient workforce for the future. We look forward to seeing the difference it makes for Londoners, our sector, and the wider industry.”

Duro Oye, CEO, 20/20 Levels, said: 

“It’s vital that underrepresented communities are not just seen but fully included in the world of good work because economic empowerment and social mobility go hand in hand. When young people from diverse backgrounds are given the right support, networks, and belief, they don’t just transform their own lives, they strengthen the communities and industries around them.

“Schemes like this are powerful because they bridge the gap between untapped potential and meaningful opportunity. By working with the Mayor of London and City Hall, we’re able to connect local ambition with systemic change, aligning community-led solutions with institutional backing to create pathways that last.

“At 20/20 Levels, we’ve seen first-hand what happens when inclusion becomes action. Many of our young people have gone from facing barriers to thriving in roles at global companies, launching ventures, and mentoring others. That’s what inclusive talent really means to us; unlocking potential, changing trajectories, and proving that talent is everywhere, but opportunity is not. The Inclusive Talent Strategy is helping to change that.”

Janet Gardner, CEO of Waltham Forest College, said: 

“Further Education Colleges play a vital role in delivering London’s Inclusive Talent Strategy, supporting Londoners to ensure no one is left behind.  By working closely with employers, healthcare providers and community partners, colleges provide high quality skills and training to meet local and regional workforce needs. This inclusive approach supports growth and productivity, driving London’s economy whilst helping Londoners build better lives and futures through fair pay, opportunity and good work.” Photo by Lewis Clarke / London : City of London - Council Office & Cityscape / CC BY-SA 2.0, Wikimedia commons.