Prime Minister Rishi Sunak announced a major package of reforms to support small- and medium-size entities (SMEs) in the UK, including thousands more apprenticeships.
A news release said that the reforms look to boost investment, cut costs for small businesses, and enable up to 20,000 more apprenticeships.
In his first economic speech since the Spring Budget, Sunak unveiled the government’s plans to fully fund apprenticeships in small businesses from 1 April by paying the full cost of training for anyone up to the age of 21, the release said, to help young people kick-start their careers and save money for businesses.
Michelle Mullen, vice-president–International Advocacy at AICPA & CIMA, together as the Association of International Certified Professional Accountants, said in a statement that the government’s commitment to funding apprenticeships for young people is welcomed.
“We hope the funding will be made available upfront, so that small businesses will be able to take advantage of it without experiencing a negative impact on their already stressed cash flows,” Mullen said.
However, Mullen hopes that apprenticeship funding will become more widely available, allowing the region to upskill people of all ages to generate needed productivity gains.
“Apprenticeships can currently be funded by a levy-paying employer transferring up to 25% of their unused levy to a different employer,” the government release said. Under the new measures, large employers who pay the apprenticeship levy will be able to transfer up to 50% of their funds to support other businesses, including smaller firms, to take on apprentices.
“We are especially pleased by the increase in the percentage of unspent Apprenticeship Levy funds, which can be transferred to another business,” Mullen said. “This is something we have been advocating for, and we welcome the government’s new measures, which will widen access to apprenticeships and help upskill the workforce to meet the needs of the modern marketplace.”
Alongside the package of reforms, a task force has been established to “boost private investment in women-led businesses”, the release said, as part of the government’s plan to create the economic conditions to encourage entrepreneurship and drive growth.
According to the release, the government is also moving to simplify nonfinancial and financial reporting for SMEs — a measure that is expected to save thousands of businesses across the UK around £150 million per year.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.