The Chancellor has made it easier for small and medium enterprises to train an apprentice as part of the Budget. The proportion that SMEs will now pay towards the cost of Apprenticeships has been halved to five per cent in a move to help employers address their skills shortages.
Mr Hammond said that he was keen to help businesses to invest and grow while developing the skills they need to prosper.
The change applies to businesses with a wage bill of less than £3m per year who do not pay the Apprenticeship Levy. The Government will co-invest in the training by funding 95 per cent of the cost.
The Government has also restated its target to create three million new Apprenticeships by 2020 while also introducing new T-Levels and investing £100m into a new National Retraining Scheme.
Joan Coe, Executive Director for Business Development at North Warwickshire and South Leicestershire College, said, “This is welcome and positive news from the Budget which should enable local businesses to review the affordability of employing an apprentice.
“We continuously hear about skills shortages from the business community and we know that Apprenticeships can make a real contribution to productivity. Investment in skills and training is vital to ensure future prosperity and economic growth.
“We train around 1,800 apprentices employed by more than 600 organisations. The College offers Apprenticeships across seven key industry sectors including more than 20 of the new Apprenticeship Standard qualifications.
“Our overall Apprenticeship achievement rate is significantly above the national average. In 2016/17, we were rated the number one college in Leicester and Leicestershire, and in Coventry and Warwickshire, for employer satisfaction with a rating of 89%, having moved up the rankings by 100 places.
“Any business that is now thinking about training an apprentice as a result of the Budget news should get in touch via our website.”