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The Chancellor George Osborne has today set out plans on an apprenticeship levy and business rates at today’s Autumn Statement.
Speaking in the House of Commons this afternoon, Osborne said that with robust economic growth forecast every year, he expected living standards to rise and an extra one million jobs to be created over the next five years.
“Our economic plan puts the security of working people first so we are prepared for the inevitable storms that lie ahead,” he said.
Apprenticeship Levy
Osborne said that a levy of 0.5% on the payrolls of large companies will help to raise £3bn a year and fund three million apprentices by the year 2020. Firms will get a £15,000 allowance to offset the levy, so only those with a wage bill of more than £3m will pay.
“It’s a huge reform to raise the skills of the nation and address one of the enduring weaknesses of the British economy,” Osborne said. He added that employers liable to the levy would get more than they put in.
Martin Couchman, deputy chief executive at the British Hospitality Association (BHA), said: “We are pleased that 98% of businesses will not be paying the apprenticeship levy because of the £15,000 payroll threshold announced in the Autumn Statement.
“We await details of how smaller businesses will be supported in training apprentices. We are pleased to see that a new employer-led body will set apprenticeship standards and ensure quality, but note that the hospitality industry has already made a lot of progress in developing apprenticeship standards.”
Business rates
A major overhaul of the business rates system was also announced, with uniform rates set to be abolished. Local councils will, by 2020, be able to set their own level of rates, which will give local authorities the power to compete with one another for business.
Earlier this year Osborne called the overhaul a “devolution revolution” and said it is the “biggest transfer of power to our local government in living memory”. Some £26bn raised in business rates each year will be devolved to local councils.
The Chancellor said that he would extend the Small Business Rate Relief scheme for another year, to help small businesses with the cost of rates.
Tourism funding
Meanwhile, Osborne also announced a new £40m ‘Discover England’ fund to help boost tourism and recognised the contribution of the industry to the UK economy.
