CHAIRMAN’S STATEMENT


Clearly the most infl uential event of the year was the UK election that resulted in the installation of a new coalition government and a changed landscape for UK education. We have seen a major review of government expenditure, and of course education funding has been in the spotlight, both in government policy-making, and in the news media.


It has been important for City & Guilds to build close relationships with members of the new government. The spending review did indeed produce challenges for further education, which we and our direct customers (colleges and other training providers) shall rise to. We are heartened by the new government’s focus on apprenticeships, which plays to core strengths demonstrated throughout our 130+ year history. Not surprisingly, the new mood


of stringency has curbed revenue growth. Nonetheless, despite a 2% rise to £117.3m across the Group, a signifi cant 3.9% gain in operating surplus to £8.1m was achieved.


New ideas for tough times


This performance is linked to major changes led by Chris Jones, Director-General, which have included a recognition that we must improve productivity towards levels already set by our competitors. The changes have been far-reaching, but Chris and his new team have set out to accomplish them via a thoughtful and fully consultative process. Sadly, there have been reductions in staffi ng. We have sought to ensure that those who have been displaced will feel as fairly treated as they could wish. Tough times give rise to new ideas,


and we are therefore focusing on a number of important opportunities, both in the UK and abroad. Very important to us are emerging links to major employers, such as B&Q and London Underground. We are


particularly proud of our ongoing links to the apprentice programme at Honda UK, and I was delighted to meet some of their outstanding employees at the Honda Institute during 2010. Our IndiaSkills joint venture


proceeds rapidly, and new links to Indian employers (the Delhi Metro being one) have been forged. I was privileged that Dr Pai, President and Chancellor of Manipal University, our partner in India, chose to accept an Honorary City & Guilds Fellowship at a ceremony in Bangalore in May. A recent visit to Bangalore by Chris Jones, which coincided with one by David Willetts, UK Secretary of State, underlined the importance the City & Guilds Group now attaches to skills development in the rapidly growing Indian market.


The next phase


I reported last year that our research and development arm, the Centre for Skills Development, had had a strong start, and I am delighted that the Trustees have felt able to approve the next phase in its business plan. The Centre provides knowledge and expertise that are hugely valuable and demonstrate our determination to help the wider vocational education community via City & Guilds’ fi nancial success. This year, we have been applying


ourselves to defi ning more clearly what we should stand for, most particularly in the minds of our stakeholders. The development of our brand strategy has been the result, and our brand will, we hope, become increasingly visible to all in the months and years ahead. Many will know that HRH The Duke


of Edinburgh last year signalled his intention to stand down from the role of President (a position he has occupied since 1952) when he reaches his 90th birthday in June 2011. I shall wish to record our sincere gratitude for all he has done in the next Review but I am delighted to be


CITY & GUILDS ANNUAL REVIEW 2009-2010


able to confi rm now that HRH The Princess Royal has accepted an invitation to succeed her father as President. We look forward to her involvement in our affairs. I would also like to pay tribute


to the following people who have now stood down from Council (in some cases just after the year covered by this report): Mr Roger Blundell MBE HonFCGI, who has been a most attentive Vice-President, Mr Ken Davidson, Dr Dick Evans FCGI, Mr Michael Paske and Brigadier Nick Thompson CBE. We extend our gratitude and appreciation to each of them. I am deeply grateful for their commitment and application, freely given, in support of City & Guilds. We benefi ted greatly from their time with us. Each year it is my pleasant duty


to thank the thousands of other individuals who give generously of their time to act as examiners or verifi ers or to sit on the many committees that are so necessary to the effective running of City & Guilds. We are, as ever, most grateful for their support.


Michael Howell HonFCGI Chairman


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