She said: “As the Government’s consultation closed earlier this month, following discussions with members both here in the north east and across the UK, at the CBI we believe all funds raised by a new Apprenticeship Levy must be ring-fenced for training with the levy rate set at a fair level by a new politically independent Levy Board.”
She added: “In our submission to government, we have warned that given some previous attempts at introducing a levy have been unsuccessful, proving costly to firms and failing to tackle skill shortages, the new Apprenticeship Levy will need to be proportionate, so as not to put employers off from taking on apprentices and meeting the Government’s 3 million target.”
Glendenning said the UK must do better in producing more technicians which, she said, was at the heart of our skills problems: “But at a time when firms are already investing over £40 billion a year on formal training and increasing apprenticeships, there is a high risk it could undermine the system not strengthen it.
“A new levy won’t be welcomed by business, so we want to see a new politically independent Levy Board setting the rate based on clear evidence with the funds ring-fenced.”
The CBI is calling for the levy to be simple and to give employers real control, uniting standards and funding in one body. It believes that a payroll-based levy would need to be significantly lower than 0.5% of total payroll to be affordable.