A 0.5% payroll tax on all employers with a wage bill of £3 million and over, the levy has been seen as a way to address the enduring skills shortage facing many industries in the UK. In the wake of the EU referendum in June, organisations from all areas of industry, including manufacturing, called on the government to delay the levy to allow time to assess the impact of Brexit on their operations.
“We welcome the government’s focus on growing investment in apprenticeships,” said Carolyn Fairbairn, director-general of the CBI. “However, the apprenticeship levy in its current form risks turning the clock back on recent progress through poor design and rushed timescales.
“The April 2017 start date will not give firms sufficient time to prepare,” she added.
However, the government remain adamant of sticking to schedule, with the publication of the details of the scheme marking the start of the process. "Our businesses can only grow and compete on the world stage if they have the right people, with the right skills," said skills minister Robert Halfon. "The apprenticeship levy will help create millions of opportunities for individuals and employers."
Kelly Ball, managing director of leading apprenticeship provider Positive Outcomes, added: “Today’s announcement from the government that the apprenticeship levy is set to go ahead as planned in April 2017 is a welcome relief. The Brexit uncertainty and the delay in updates was becoming disconcerting, but now we know it’s definitely going ahead, both employers and apprenticeship providers can plan accordingly."
Ann Watson, CEO of Semta, the not-for-profit employer-led organisation, charged with skilling engineering and advanced manufacturing, said: "Over £350 million a year is spent on apprenticeships in our sector, 25% of the total.
"It’s crucial that employers are able to maintain this level of investment in their skills, so we welcome the generous 90% co-investment proposed by the government and the uplift for STEM apprenticeships."