This paper examines the extent, nature, and implications of spatial variations in skill levels across England. Section 2 sets out reasons why skill levels should be important to localities and their economic potential by outlining their growing importance and the way in which they are connected to economic well-being. Section 3 sets out the extent and nature of spatial skill variations in England, considering different measures of the qualifications (used as a proxy for skills) of the labor force and the qualifications of young people at school. Section 4 examines the relationship at a local level between the skill levels of the work force and those of the school population to consider the possibility of a systemic skills condition across localities. Section 5 sets out to assess the relationship between the spatial skill variations found and various indicators of local economic performance--employment, competitiveness, earnings, and deprivation. Section 6 sets out the main implications of the findings. (Contains 24 references.) (YLB)