Leadership Briefing: 7 September 2026
What this week's policy thinking means for leaders
This week’s briefing looks at young people who are outside work but not claiming benefits, the growing dependence of businesses on a small number of technology providers, and a new government fund for British AI companies.
The subjects are different, but each raises a question about access. Employers may be overlooking potential recruits, businesses may have less freedom to change technology than they realise, and promising AI tools still need a route into everyday use. In each case, leaders have choices about where to look, what to depend on and how to turn opportunity into something useful.
Reports and publications worth exploring
1. Young people outside work are not all out of reach
Institute for Fiscal Studies research finds that almost 900,000 18- to 24-year-olds in Great Britain were not in education, employment or training at the end of 2025. Around 300,000 were not claiming benefits and therefore sat outside the main employment-support system.
Many of these ‘hidden NEETs’ are close to the labour market: among 22- to 23-year-olds, 74% are looking for work, 57% have been out of work for less than six months and around half have a degree. Yet 19% have been out of work for more than 18 months, while some support programmes remain unavailable because eligibility is tied to benefit claims.
For employers facing skills shortages, this is a reminder that potential candidates may sit outside the usual routes into work. Broader recruitment channels, paid entry-level opportunities and simpler applications could help organisations reach young people who are ready to work but lack experience or connections. It is also worth looking at where candidates leave the recruitment process, as the barriers may be closer to home than leaders expect.
Read more: Who are the NEETs not claiming benefits?, Institute for Fiscal Studies
2. Big Tech market power is becoming a barrier to growth
IPPR research suggests that Big Tech market power is constraining UK businesses. Among firms heavily reliant on digital platforms and infrastructure, 79% say the dominance of major technology companies limits competition, ranking it ahead of access to finance and talent as a barrier to growth.
More than a third of tech-intensive firms have decided not to offer a product because of this dominance. Meanwhile, 68% say changing their main provider would be costly, disruptive or impossible, and half could operate normally for only a few days if access were lost.
Technology decisions can create dependencies that are easy to overlook when systems are working well. Leaders need to understand how reliant the organisation is on its main providers, how quickly services could be restored if access were lost and whether data and operations could move elsewhere. The cheapest or most convenient option today may leave less room to adapt tomorrow.
3. Government opens £100m fund to accelerate AI in public services
The Government has launched a £100 million competition to help British AI companies develop and test technologies for public-sector challenges. Initial competitions will focus on NHS productivity, efficient AI computing, defence integration, and the security and resilience of AI agents.
The scheme aims to bridge the gap between promising prototypes and proven products. Successful businesses will work with government departments in real settings, may receive upfront payments and will retain the intellectual property they create.
The emphasis on testing technology in real settings is important. AI projects are more likely to succeed when they begin with a clear problem and involve the people who will use them. Leaders also need to decide how progress will be measured and what evidence will justify wider adoption. A promising demonstration is only the start.
Read more: £100 million competition to back British AI companies to fix public services, HM Treasury and Cabinet Office
4. Lifelong learning could help tackle the youth jobs crisis
The British Chambers of Commerce is calling for a rethink of lifelong learning alongside efforts to address the growing number of young people outside education, employment or training. Its new report, From Classroom to Career: Delivering Growth Through Lifelong Learning, argues that youth employment and adult skills should not be treated as separate challenges, particularly as AI and other technologies continue to change the nature of work.
The case is reinforced by the BCC's latest workforce survey of more than 850 businesses: 58% are experiencing skills shortages, while 67% say better access to skilled employees would support growth. The report calls for a simpler, more joined-up system connecting careers guidance, skills development and employment support throughout people's working lives. It also proposes measures including more flexible work experience, stronger employer involvement in skills policy and clearer arrangements for lifelong learning.
For leaders, the message is that skills development cannot be viewed simply as a response to an immediate vacancy or skills gap. As careers become less linear and technology changes jobs more quickly, organisations will need to think about how they help people build and refresh their capabilities over time. That means making learning part of the way work is designed, rather than something that happens separately from it.
Read more: From Classroom to Career: Delivering Growth Through Lifelong Learning, British Chambers of Commerce
Leadership takeaway
These stories all show how easily opportunity can be limited by the systems around it. Recruitment processes can miss people who are ready to work, technology choices can reduce room to manoeuvre, and promising innovations can stall between a successful trial and wider use. None of these problems is solved by a single initiative, but leaders can pay closer attention to the routes through which people, services and ideas enter the organisation.
That means asking whether recruitment reaches beyond familiar networks, whether critical systems are overly dependent on one provider, and whether innovation projects have a clear owner once the initial funding or enthusiasm fades. It also means looking at where people or projects tend to drop out: candidates who do not complete an application, services that cannot be transferred, or pilots that never become part of normal operations.
A useful starting point is to choose one area and follow the journey from beginning to end. Leaders may find that a relatively small change, a simpler entry route, a credible alternative supplier or an agreed process for scaling a successful trial, creates more options and reduces risk. The common lesson is not simply to pursue new opportunities, but to make sure the organisation has the routes, relationships and capacity needed to use them well.
