"Employers across the UK are investing less in training, with those with the lowest qualifications missing out."
This is the finding of a new report by Learning and Work Institute, supported by NOCN, which shows the Government’s aim of developing a high skill, high wage economy is being put at risk. Marking five years since the introduction of the Government’s apprenticeship levy, the report argues for a new ‘Super Skills Tax Credit’ to support levelling up.
This report comes after the Chancellor’s pledge in his Spring Statement to look at ways to support employers to invest more and improve the apprenticeship levy. It finds that Government policy has been subject to almost constant chop and change over recent decades, and often now reinforces existing inequalities rather than tackling them. ago.
The report argues that we need a bigger ambition to level up opportunity and increase the amount employers invest in training. It concludes that the Chancellor should introduce a new Skills Tax Credit. Modelled on the successful R&D tax credit, this would allow employers to deduct 230% of the cost of apprenticeships and accredited training from their tax bills, with a Super Skills Tax Credit allowing 300% of training costs to be deducted in priority levelling up areas.