The new initiative, entitled 'Skills for Growth – The National Skills Strategy', is designed to drive more funding into training, to create new apprentice places and to simplify the way that skills policy is delivered across the UK.
According to the strategy announcement, it will create "a modern class" of technician, through expansion of advanced apprenticeships and, in turn, create 35,000 new places over the next two years.
The scheme plans to "radically" simplify the delivery of skills policy by working in conjunction with the UK Commission for Employment and Skills and by cutting the number of public bodies by more than 30.
However, Watts said that he was disappointed with the announcement and said that the delivery mechanism for skills was still not clear.
"The strategy recognises the need to simplify the skills system and we welcome the plans to reduce the number of regional bodies with overlapping responsibilities," he said.
"We believe that in order to accurately represent the needs of employers, the skills strategy should have a sectoral rather than a regional lead."
He added: "We are concerned the suggested moves to simplify the skills system will not have the desired benefits for employers, and will instead only serve to simplify the system for the government and stakeholders.
"If changes are not made with employers in mind, they will not benefit the economy."
While Proskills applauded the increased investment in apprenticeships, it fears that funding may be cut for other vocational qualifications.
Watts said: "We are sitting on a demographic time bomb. There are not enough young people coming through and companies are struggling to compete.
"It is hard to understand the decision to withdraw funding from units and smaller qualifications or the removal of support for additional non-first qualifications."
Commenting on the strategy, business secretary Lord Mandelson said: "The goal of this strategy is a skills system defined, not simply by targets based on achieved qualifications, but by ‘real world’ outcomes. Relevant, quality skills, with real market value."
Proskills chief executive 'disappointed' with government skills strategy plans
Proskills chief executive Terry Watts has warned that the government's recent skills strategy announcement is at risk of "oversimplifying" the skills system - a move that he claimed would only benefit the government and not employers.
