CBI Confederation of British Industry : Business priorities for the apprenticeship levy

Carolyn Fairbairn has written to business secretary Sajid Javid MP setting out key principles for the new apprenticeship levy.

Click here for the full text of the letter

While the levy approach was not supported by the CBI, Carolyn emphasised business' commitment to closing the skills gap and that the new system must be driven by economic and business need, allow flexibility according to sector and size and recognise the most committed firms.

Click here to read coverage of Carolyn's letter in the Financial Times

Business input on the levy is critical. Carolyn stressed there must be a genuine transition from government to business-led system as 'for over a decade businesses have been promised more influence' on the skills system but with perpetual change and red-tape 'leading many firms to walk away'. The new Institute for Apprenticeships, a creation originally suggested by the CBI, will be key, with Carolyn highlighting its 'credibility and longevity' as a priority - and the CBI will be active in shaping its remit and powers to ensure it truly is an independent employer-led body.

Given the variety of skills needs across industry, Carolyn underlined the need for flexibility to accommodate different business models, as well as a focus on SMEs and smaller levy payers to limit operational burdens. Firms' commitment to high-quality training and apprenticeships should be rewarded through an 'allowable expense' regime to reclaim some associated costs alongside greater freedoms for higher-levy payers.

As the levy is UK wide but skills are a devolved issue, Carolyn stressed the need for coherence across the four nations and clear communication on the policy ahead of implementation. These principles formed the basis of discussion at a CBI member roundtable with skills minister Nick Boles MP, as part of CBI's ongoing work on the levy.

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