The government will create up to 20,000 more apprenticeships with a number of reforms including fully funded training and cutting red tape for small firms.
In his first economic speech since the Spring Budget, the prime minister is expected to set out a package of reforms, including the cutting of red tape for small and medium-sized enterprises, and more apprenticeship places.
“Apprenticeships are a fantastic way for businesses to develop the skills they need, and these new measures will help more businesses and young people benefit from them,” education secretary, Gillian Keegan, stated.
“Our plan to deliver a high-growth, high-skilled economy is working, with more opportunities available to young people than ever before.”
The government is expected to fully fund apprenticeships in small businesses from April 1 by paying the full cost of training for anyone up to the age of 21.
This will remove the need for small employers to meet some of the cost of training and saves time and costs for providers like further education colleges who currently need to source funding separately from the government and businesses.
Additionally, from the start of April, the government will also increase the amount of funding that employers who are paying the apprenticeship levy can pass onto other businesses.
It detailed that apprenticeships can currently be funded by a levy paying employer transferring up to 25 per cent of their unused levy to a different employer.
However, under the new measures, large employers who pay the apprentice levy will be able to transfer up to 50 per cent of their funds to support other businesses, including smaller firms, to take on apprentices.
The government said that this will help SMEs hire more apprentices by reducing costs and enabling more employers to get the skilled workers they need while unlocking more opportunities for young people across a range of sectors.
Together, these measures are expected to enable up to 20,000 more apprentices, primarily for young people.
SMEs
Also expected is the announcement of further deregulatory measures to simplify both non-financial and financial reporting to SMEs, which is expected to save thousands of businesses across the UK around £150mn per year.
Secretary of State for Business and Trade, Kemi Badenoch, said: “Almost every job in the UK is owed to what is, or what previously was, an SME.
“Whether it’s through cutting red tape, unlocking investment or lowering business costs, today’s announcements show that this government is committed to doing all it can to turbo-charge SMEs so that they can go further and faster than ever before.”
This deregulation includes increasing the number of companies which qualify as a SME through a 50 per cent uplift to the thresholds that determine a company’s size.
This is expected to benefit up to 132,000 businesses who will be spared from burdensome form-filling and non-financial reporting requirements.
The government also intends to remove several “duplicative and bureaucratic” EU reporting requirements, including for what companies must set out in their annual reports.
