CMI response following the Prime Minister's speech revealing new details about the Growth and Skills Levy

Today, in Liverpool, the Prime Minister revealed new details about the Growth and Skills Levy. It was announced that businesses will now be required to fund a greater portion of their Level 7 apprenticeships outside of the levy (according to a release from the Department for Education and Number 10).

In response to this, Ann Francke OBE, CEO of the Chartered Management Institute (CMI), said:

We are concerned that this decision may negatively impact three of the five government missions - grow the economy, reform the public sector and provide opportunity for all.

The unintended consequences of restricting the use of higher level of apprenticeship funds will affect those people looking to improve their management and leadership skills which help to drive up productivity. That is exactly what the government’s growth mission is meant to be focussed on.

Sixty per cent of Level 7 management apprentices accredited by CMI work in the public sector and ensuring they have the skills they need is vital to delivering public sector reform, including across the NHS.

Finally, 3 in 5 of senior management apprentices come from the more deprived areas of the UK. Many of these managers come from lower socio-economic backgrounds and were denied the chance to go to university.

We have critical skills shortages across the UK, which will require considered, long-term thinking and, crucially, stronger collaboration with our already-strained University sector and businesses. It’s essential that the Government continue to work with organisations like ours and the wider sector to tackle the challenges ahead.