Retail welcomes apprenticeship levy reform

Retailers such as AO and Co-Op as well as the British Retail Consortium have welcomed government plans for a new growth and skills levy.

Keir Starmer announced yesterday (22nd July) that his government would introduce a new levy to replace the much-maligned apprenticeship levy.

John Roberts, AO founder and CEO, said on X (formerly known as Twitter): “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…

Advertisement

— John Roberts (@johnrobertsAO) July 22, 2024

Alongside this Tom Ironside, British Retail Consortium (BRC) director of business and regulation, praised the prime minister for “cutting right to the heart of the problem”.

He said: “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 the 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 new levy comes after many big businesses have called for an overhaul of the system including John Lewis, Tesco, and M&S.