This chapter discusses the relationship between the labour market and vocational education and training in England. For decades British governments have emphasised the need for more people to stay longer in the formal education system and at the same time have attempted to improve work-based training. They have also emphasised the centrality of vocational education and training in improving national productivity and growth and in alleviating distributional problems. We argue that education and training have made a more limited contribution to these objectives than governments might have hoped. This is because of a very imperfect match between the requirements of the labour market and what the vocational education and training system has produced. We suggest that a greater integration of industrial strategy and education and training policy is needed. More emphasis needs to be placed on apprenticeships and on lower level post-compulsory education rather than on higher education. Greater support is needed for educational interventions in early years in an attempt to reduce class bias in attainment and consequently in labour market opportunities. An overarching problem is that, whilst employer engagement has been a central theme of government policies, the extent of employer buy-in to these policies is unclear.