Scottish retailers fear apprenticeship levy risks becoming ‘just another employment tax’

Businesses in England will be able to create an account to receive the English fraction of the Levy payment in order to directly pay for training.

However, Scottish businesses will receive no direct return for their levy payments which will commence this month.

According to the Scottish Retail Consortium, Scottish retailers are facing a situation even more stark.

Retail is expected to contribute around £15 million through the Apprenticeship Levy over the coming year. However, as a non-priority sector, the industry will receive no increase in funding towards apprenticeships.

This is despite claims from the SRC that the challenges of the current situation have been highlighted, including that many retail apprentices are older than the age threshold for funding.

The Scottish Government has pledged a modest portion of its £221 million share of Levy receipts in the coming year towards a new £10 million Flexible Workforce Development Fund, described as: “a new £10 million skills fund”.

However, this fund is not yet available to businesses, is unlikely to be until the autumn, and clarity is awaited on how firms will be able to access the money.

Ewan MacDonald-Russell, SRC head of policy, said: “Businesses north of the border risk feeling short-changed as the first bill for the Apprenticeship Levy arrives. Whilst businesses in England have a transparent account which they can access and direct towards training, equivalent businesses in Scotland are paying what appears to be little more than just another employment tax.

“Retail in particular looks to be getting a raw deal. Scottish retailers will face a likely £15 million tax bill this year for the levy with precious little in return. The Scottish Government need to look much more closely at how they match their promising rhetoric about a better Scottish approach with the disappointing paucity of information about how retailers will benefit.”