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11 January 2013 | Anna Reynolds

Businesses are being urged to bid for £340 million of government money to tackle skills gaps in the supply chain.

The pilot scheme aims to help solve the shortage of skills in industries such as manufacturing and engineering by giving UK businesses the opportunity to invest in their current and future workforce.

In the Autumn Statement in December 2012 the chancellor George Osborne addressed the issue of a skills shortage which is damaging economic growth, and the government has provided £90 million extra funding - on top of £250 million made available in November - as part of the second round of the initiative.

The Employer Ownership of Skills Pilot that was launched by the UK Commission for Employment and Skills. The scheme gives employers from all sectors the opportunity to take on graduates and apprentices by developing training programmes within their organisation.

Semta, the sector skills council for science, engineering and manufacturing technologies, has called on companies to get involved in a bid to raise skills and create jobs in these industries. The organisation is working with companies who together won £70 million in the first round of the pilot in December 2011. The pilot runs for four years.

Sarah Sillars, chief executive of Semta, told SM: “We can work together to make youngsters and their teachers more aware of the careers which exist, to explode the stereotypical images which put some off from pursuing a job in the sector and develop programmes and techniques for companies and those within their supply chain.”

* For more information and details on how to bid click here

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