AICPA & CIMA call for apprenticeship levy reform

AICPA and CIMA have together called on the government to reform the apprenticeship levy ahead of the Spring Budget, in a bid to boost higher level skills and address skills gaps in the workforce.

In their submission to the Treasury, they have called for reforms that would widen access to training, and proposed a new Apprenticeship and Skills Levy which would allow the money raised by the levy to be spent on other forms of skills and development training as well as apprenticeships. 

They argued the refreshed Apprenticeship and Skills Levy would provide a flexible framework for businesses to develop their people and talent. 

Andrew Harding, FCMA, CGMA, CEO — Management Accounting, AICPA and CIMA, said: “If the apprenticeship levy were reformed to allow access to a wider range of training and professional development, that would go some way to addressing the skills gaps which are currently preventing the economy from growing as it should.

“We are far from the only organisation asking for this type of reform, and the calls come from across the political spectrum as well. I hope that policy makers will give the issue proper consideration.” 

CIMA provides the Secretariat for the All Party Parliamentary Group (APPG) on Accounting for Growth. In AICPA and CIMA’s budget submission, some of the APPG’s recommendations were highlighted, including:

• Linking the apprenticeship scheme with the government’s levelling up and growth plans to help build skills clusters.
• Encouraging companies to change recruitment practices to advertise for ex-apprentices.
• Increasing the percentage of unspent levy funds that can be transferred to another business to 40%.
• Relaxing the 12-month rule to allow companies to fund short courses and skills boot camps through the levy.