This document consists of a two-part report that was developed as part of a project to develop a national workforce development (WfD) system to ensure that people in the United Kingdom develop the basic, intermediate, and other skills needed in the 21st century. The first report sets out proposals for a more demand-led system that places skill development firmly in the context of wider business needs and gives employers and employees a central role in determining the nature of provision. The report examines the following topics: the importance of WfD; factors impeding WfD; raising demand; meeting demand with high-quality WfD provision; developing a government framework to support WfD; and implementing the framework. The first report includes 55 figures/boxes and 12 appendixes, including a description of the methodology used to develop the policy statement and action plan, list of organizations and people consulted, glossary, 70-item bibliography, performance targets, and 312 suggestions for further reading. The second report presents a comprehensive action plan for WfD in England to 2010 that details the steps England's government will take in the following areas: raising informed demand; improving supply; and developing the right government framework. The following items are appended to the second report: the action plan; a glossary; an 18-item bibliography; and a discussion of sources of further information. (MN)