Reacting to further detail on the announcement of reforms to the apprenticeship system in England, Alex Veitch, Director of Policy at the British Chambers of Commerce, said:
“Skills shortages continue to be a major concern for businesses and a drag on economic growth.
“The proposed new Growth and Skills Levy was a key part of the Government’s plans at the election. It’s welcome ministers have acted early to give more details about skills reform.
“We’ve long argued that the current Apprenticeship Levy needs urgent reform to make it more flexible. Businesses need a simple, coherent and responsive system that properly incentivises employer investment in training.
“To drive sustained economic growth, companies need a levy that funds training at all ages and skill levels. Any imbalance in the system will impact business investment.
“Higher level apprenticeships provide a non-academic pathway to progression for many people. We’ll be working with Government to make sure businesses have clarity on how Level 7 qualifications will be funded in the future.
“In the months ahead we’ll also be seeking reassurance that these planned reforms won’t place increased costs on businesses, who are still facing a challenging economic landscape.”