HUGH AITKEN
A successful economic future for Scotland rests on our skills system and businesses are steadfastly committed to investing in and developing current and future talent. Firms are passionate about creating apprenticeships that enrich the opportunities of young people and develop future business leaders.
That is why companies have raised concerns with the design of the UK-wide apprenticeship levy, and why the CBI are calling on the UK government to take the time to get the levy right before launching it. The current design of the levy is deeply flawed and risks having numerous knock-on effects, including reducing investment in non-apprenticeship training. So much is yet to be resolved before the planned start date of April 2017 – and business concerns about the impacts of this policy must be listened to and addressed, as the CBI set out in response to the recently launched consultation on English funding rules.
Our message is clear – delay introduction of the levy to ensure we have the chance to make it a success, so that it contributes to raising productivity, competitiveness and prosperity.
In Scotland the government is currently running a welcome consultation on how the levy should interact with the Scottish skills system, with the UK-wide levy having a significant impact on devolved skills policy across Scotland, Wales and Northern Ireland.
The CBI has been working with business on how the levy can have maximum positive impact on skills investment in Scotland. We believe it will be vital to prioritise using the funds collected from the levy in a flexible skills fund that provides direct support to businesses that will be paying the levy.
A flexible skills fund would make sure that businesses can invest in their current and future workforce, and give them the ability to invest in all of their training needs – whether apprenticeships, reskilling current employees or working with supply chains to develop talent in the small and medium-sized companies they rely on.
With clear criteria for cost recovery developed in collaboration with business, training providers and government we can develop a system that gives levy-payers the ability to utilise funding to address skills gaps in the Scottish economy – not only for apprenticeships but also for broader skills development. Businesses know best what skills they need in their organisations and sectors, and should have a strong voice in shaping the system.
Current apprenticeship programmes delivered in partnership with the Scottish government are valued by businesses and we would encourage funding to continue with the spending arrangements already in place. With the levy, it is important to ensure the employers that will be major direct funders of the skills system are supported to invest in skills.
Hugh Aitken is director of CBI Scotland
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