A new agreement between the Government and employers will deliver more skilled workers to do the jobs of the future in construction, hospitality and processing and manufacturing.

The Government will earmark over £300m from its training budget to tackle current and future skills shortages within these key sectors - with £133m to help construction, £112m for hospitality and £62m for processing and manufacturing. The funding will enable employers in these sectors to improve the qualifications and skills of their workforce, and offer greater numbers of apprenticeships.

It is the first major stage of a radical shake-up of the skills and training system instigated by John Denham to tackle expected skills shortages. As part of the shake-up, John Denham will also today meet business leaders in Westminster to discuss what more can be done to ensure the supply of skilled labour matches the emerging skills gaps in key sectors of tomorrow's economy.

Secretary of State for Innovation, Universities and Skills John Denham said: "Industries such as construction, hospitality and processing are key to our future prosperity, but there is a need for more highly trained people if we are to continue to lead the world in an increasingly competitive global economy.

The success of our country will depend on doing even more to increase people's skills and their ability to gain jobs in growing and successful industries, such as these."

In return for the funding, the Sector Skills Councils, ConstructionSkills, People1st and Proskills, will use their unique sector understanding to encourage employers to take advantage of Government initiatives such as Train to Gain, to make the Skills Pledge, to offer more Apprenticeships and to ensure their staff are given the opportunity to gain relevant qualifications and training.