Prime minister Rishi Sunak is set to announce a reform package to support small businesses today (18 March) during a trip to Warwickshire.
According to a gov.uk press release, this will include a pot of £60m to fund a further 20,000 apprenticeships and deregulation that the government believes could save small businesses up to £150m.
The Institute of Export & International Trade, which has its own freight forwarding qualification delivered through apprenticeship arm IOEx Ltd, welcomed the news.
Describing the need to address the skills gap as vital to supporting the growth of the UK’s SMEs, director general Marco Forgione said:
"We know from our members that having the right mix of skills in their businesses is vital for them to be able to flourish in trade and to support their continued growth.
“In order for UK SMEs to trade more, not only is increasing skills provision needed, but also a recognition of the need for these opportunities to be spread across the country, so that skills shortages in key regions can be addressed.”
Apprenticeships
Leading the predicted announcements is the additional funding for apprenticeships. From April 1, the £60m pot will facilitate the full funding of apprenticeships in small businesses for employees aged up to 21.
Previously, employers were required to meet some of the costs. In addition, the government claims that the measure will also help further education providers who deliver the theory component of apprenticeships who would otherwise need to source funding separately.
The intervention has been welcomed amid insufficient placements to meet subscriptions. It has been suggested that there are as many as three applicants for each apprentice role currently available, and the University and College Admissions Service (UCAS) reported that many students aspiring to an apprenticeship were unable to find a role in their desired field (35% of respondents) or location (61%).
Levy leverage
The start of April will also mark an increase in the amount of unused apprenticeship levy that larger businesses can pass on to their smaller counterparts.
The apprenticeship levy must be paid monthly by all companies with an annual pay bill of over £3m, and companies connected to other companies and charities for Employment Allowance purposes, which have a combined £3m+ pay bill.
Currently, businesses can pass on up to 25% of their unused fees, but as of 1 April this will increase to 50%. As of December, 530 employers including ASDA, HomeServe and BT Group have pledged to transfer over £35m to support apprenticeships in other businesses, according to the government.
Deregulation
Among the announcements expected later today are changes to rules surrounding financial and non-financial reporting for small businesses.
By shifting the parameters around which businesses qualify as SMEs, the government estimates that 132,000 business will no longer be required to carry out what it characterises as “burdensome form-filling”, which could save a projected £150m per year.
The current set of requirements were mandatory under EU membership, but can be relaxed following the UK’s exit from the bloc.
‘Tidal wave of opportunity’
Describing small businesses as “a driver for innovation and aspiration, and as the key to building a society where hard work is always recognised and rewarded”, Sunak said that:
“Taken together, these measures will unlock a tidal wave of opportunity and make a real difference to businesses and entrepreneurs across the country.”
IOE&IT’s International Freight Forwarding apprenticeship, delivered by apprenticeship delivery arm IOEx is currently accepting applications.
For any further information about this qualification or apprenticeships at IOE&IT, please contact apprenticeships@export.org.uk.