The Government’s pledge to create three million new apprenticeships by 2020 has been welcomed by the Builders Merchants Federation (BMF).
Chancellor George Osborne announced in his Emergency Summer budget that the new apprenticeships will be funded by a levy on large employers and firms that are committed to training will be able to get back more than they put in.
John Newcomb, managing director of the Builders Merchants Federation (BMF) said: “Apprenticeships are the life blood of our economy.
“We have been urging the Chancellor to ensure the future funding provision for apprenticeships is sufficiently attractive to encourage employers to invest in developing new talent and training.
“The apprenticeship levy is a welcome and much needed boost to this. It means there is a real incentive to take on apprentices.”
Newcomb added: “The setting of the level of the Annual Investment Allowance to £200,000 by January and raising the Employment Allowance by £1,000 to £3,000 by April next year will help our SME members, in particular.
“The freezing of fuel is also good news but and will be offset by the higher wage bills due to the rise in the Living Wage. Members will be squeezed by this in the short term especially as the fall in corporation tax to 18% will not take full effect until 2020.”