Plans to reform the apprenticeship levy have been welcomed by the British Chambers of Commerce (BCC) but they must come at no additional cost to business.
The Prime Minister Sir Keir Starmer and Education Secretary Bridget Phillipson announced a new growth and skills levy which will replace the existing apprenticeship levy and include new foundation apprenticeships.
They said the new apprenticeships would give young people a route in to careers in critical sectors, enabling them to earn a wage whilst developing vital skills. 
The new levy would also allow funding for shorter apprenticeships, giving learners and employers greater flexibility over their training than under the existing system – where apprenticeships must run for at least 12 months.
Alex Veitch, Director of Policy at the BCC, said: “Skills shortages continue to be a major concern for businesses and a drag on economic growth.
“The proposed new Growth and Skills Levy was a key part of the Government’s plans at the election. It’s welcome ministers have acted early to give more details about skills reform.
“We’ve long argued that the current Apprenticeship Levy needs urgent reform to make it more flexible. Businesses need a simple, coherent and responsive system that properly incentivises employer investment in training.
“To drive sustained economic growth, companies need a levy that funds training at all ages and skill levels. Any imbalance in the system will impact business investment.
“Higher level apprenticeships provide a non-academic pathway to progression for many people. We’ll be working with Government to make sure businesses have clarity on how Level 7 qualifications will be funded in the future.
“In the months ahead we’ll also be seeking reassurance that these planned reforms won’t place increased costs on businesses, who are still facing a challenging economic landscape.”
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