Retailers including AO and Co-op welcomed the government’s plans for a new growth and skills levy, which will replace the much-maligned apprenticeship levy, announced by Keir Starmer yesterday (22 July).
The prime minister and education secretary unveiled the launch of Skills England, in a bid to bring together “the fractured skills landscape and create a shared national ambition to boost the nation’s skills”.
AO founder and CEO John Roberts said: “Reform of the apprenticeship levy is finally on the cards. AO, Currys, Tesco, B&Q and McDonalds UK are ready and willing to help with advice, practical testing and sharing lessons.
“Let’s not leave it only to politicians but rather involve employers in how we mould the jelly so that it works this time.”
Reform of the Apprenticeship Levy is finally on the cards. @ao, @currys, @tesco, @BandQ, and @McDonaldsUK are ready and willing to help with advice, practical testing and sharing lessons.
Let’s not leave it only to politicians but rather involve employers in how we mould the…— John Roberts (@johnrobertsAO) July 22, 2024
Co-op chief people and inclusion officer Claire Costello added: “We welcome the announcement of the Growth and Skills Levy, this is something that we’ve been asking for.
“A robust and stable skills policy is key for individual life chances and key to employers, like the Co-op, in having access to the skilled workers they need.”
The supermarket exec continued: “Skills matter because put simply it helps people to ‘get on’ and we know gaining skills can open up opportunities within communities across the country and enable young people to start a career and older workers to develop or change their career.”
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Meanwhile, British Retail Consortium (BRC) director of business and regulation Tom Ironside said: “In his speech today, the Prime Minister cut right to the heart of the problem with the current apprenticeship levy – its inflexibility.
“We welcome his call to give businesses more flexibility to spend funds on the training [businesses] think is really necessary”.
He added: “The Apprenticeship Levy in its current form is broken, with half of the retail industry’s £250m contribution going unspent. Retailers are excited to see the details of the new Growth and Skills Levy, and are keen to work with government to ensure its greater flexibility would allow them to spend funds on the most suitable pre-employment courses and short courses encompassing functional and digital skills.
“If the government wants to drive growth, and reduce the reliance on non-domestic workers, businesses need the right tools to train their workforce for the jobs of today, and the jobs of tomorrow.”
The comments come after retailers have long been calling for an overhaul of the “broken” apprenticeship levy, with John Lewis, Tesco, and M&S describing it as a “complete waste of money” in May.
Earlier this month, Sainsbury’s CEO Simon Roberts also said he wanted to see an overhaul of the “inflexible” levy under the new government.
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