Leading high street firms are calling for apprenticeship reforms to unlock economic growth. Businesses argue that the current levy system is flawed and results in wasted funds at a time when the country faces worker shortages. Companies including Tesco, B&Q owner Kingfisher, McDonald’s, Currys and Halfords are seeking more flexibility in apprenticeship training, including the removal of course length rules. Since 2017, £2bn of funds have been returned to the Treasury due to stringent rules surrounding the apprenticeship levy, leading to a decline in entry-level apprentices. McDonald’s CEO Alistair Macrow suggests allowing a wider range of courses and increased coverage of apprentice employment costs. The reforms are seen as crucial for recruiting older workers and addressing the skills gap. Chancellor Rachel Reeves is aiming to steer a pro-growth Treasury, but faces the challenge of bringing economically inactive individuals back into the workforce.
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