Rishi Sunak has pledged to increase apprenticeship opportunities by up to 20,000 through a series of reforms, including fully funding training for young individuals and reducing bureaucracy for small businesses.
Starting April 1st, the government will cover the entire cost of apprenticeships for individuals aged 21 or under at small firms. To support this initiative, £60 million of new investment is allocated for the coming year.
Labor criticized the Tories, highlighting the challenges faced by small businesses after 14 years of economic stagnation.
During a speech at a conference for small businesses in Warwickshire, Prime Minister Sunak outlined a comprehensive reform package aimed at unleashing a wave of opportunities. Alongside funding apprenticeships, the government plans to increase the amount of funding companies can transfer to other businesses under the apprenticeship levy.
The apprenticeship levy, introduced in 2017, is paid by large firms to create more apprenticeship opportunities. However, there have been calls for reforms, with significant amounts remaining unspent annually.
Starting April 6th, businesses will be able to transfer up to 50% of unspent funds, up from the previous 25%. These changes, coupled with increased investment in training, are expected to facilitate the creation of up to 20,000 additional apprenticeships.
Sunak affirmed the government’s commitment to making the UK the premier destination for business, emphasizing the significant impact these measures will have on businesses and entrepreneurs nationwide.
Further reforms include a 50% rise in the thresholds determining a company’s size, potentially enabling 132,000 more businesses to qualify as small and medium-sized enterprises (SMEs), thus alleviating non-financial reporting requirements.
Business Secretary Kemi Badenoch hailed SMEs as the engines of economic growth and stressed the government’s dedication to bolstering their growth prospects.
The government aims to streamline reporting requirements, with anticipated savings of £150 million per year for SMEs.
Sunak, alongside other Cabinet ministers, will engage with business leaders at the conference, which will convene approximately 150 SMEs and business groups.
The Prime Minister will also announce an industry-led task force to enhance private investment in businesses led by women.
Labour’s shadow business secretary Jonathan Reynolds criticized Conservative economic policies, highlighting the increasing challenges faced by small business owners. He emphasized Labour’s commitment to implementing reforms to support businesses, including addressing business rates, and late payments, boosting exports, and ensuring fair access to public contracts.
