Abstract: Governments in Australia and overseas are faced with the challenge of ensuring that the vocational education and training systems will be able to meet future skill requirements, including needs for new or different skills arising from innovation. During late 2003 – early 2004, CEET conducted a small research project to identify the major strategies being adopted by Australia’s states and territories to build capability in vocational education and training systems to meet future skill needs. The major purposes of the project were: - To document the range of initiatives being adopted, their rationales and objectives, funding and major features. - To highlight similarities and differences between the approaches and the various emphases being given to different aspects of VET, to types of skills and innovation and to VET-industry relationships. - To highlight ‘good ideas’ and best practice approaches. To provide a comparison with Australian initiatives, the project looked briefly at reform of VET in the U.K and especially the program supporting Centres of Vocational Excellence (CoVEs) in England. This paper reports on the research conducted in the U.K. A companion working paper reports on the Australian part of the project.