The impact of the UK Government’s apprenticeship levy on employers has been “disastrous”, according to a business leader.
Dame Judith Hackitt, who chairs the EEF manufacturers’ group, said the levy was “complex”, companies were unable to access their funds and many viewed it as just another tax on business.
Addressing the annual dinner of the EEF in London tomorrow, attended by Business Secretary Greg Clark, Dame Judith will say that many companies have postponed or even halted apprenticeships because of the levy.
The measure was introduced last April, making employers with an annual pay bill of £3million contribute 0.5% of their payroll towards a levy, which can be claimed back to fund training for new or existing employees.
Business groups throughout the UK have been voicing mounting concerns about the levy, with firms saying they have struggled to comprehend how the system was meant to work.
Dame Judith will add in her speech that business needs urgent clarity on any Brexit transition deal and wants the government to avoid new trade barriers or complex customs arrangements.
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