Tesco CEO Ken Murphy has urged the government to reform the Apprenticeship Levy, which he said has “outdated rules”.
Speaking at Retail Week Live yesterday (28 March), Murphy said that the leading retailer has seen a decline in the number of apprentices taken on by 70% since 2017.
It has also only been able to make use of 14% of the £100m it has put into the fund since it was launched six years ago.
“We’re not able to offer as many opportunities as we’d like to, opportunities that are desperately needed, because of outdated rules around the Apprenticeship Levy,” Murphy said.
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“Intended to fund more apprenticeships, the levy has actually had the opposite effect by unfairly prioritising senior level apprenticeships over those at entry level.
“This means the levy is reducing apprenticeship opportunities for those who would benefit most, taking away an accessible stepping stone to more fulfilling careers despite the cost-of-living crisis.”
He said the government needs to make the levy “much more sustainable, scalable and simple.”
According to reporting by The Grocer, Murphy called on the government to make the levy more practical for retail employers to reverse decline in entry-level apprenticeships, stopping thousands of people from missing out.
He added that the scheme should allow funds to be invested in shorter, high-quality courses for more tailored training.
“We’re confident that with the right support from government, Tesco and other retailers could increase the number of apprentices by up to 50%, resulting in an additional 8,000 opportunities across the retail sector.”
He called on the government to make the bill “sustainable”, adding that “it starts with freezing the tax rate. This would reduce the upwards pressure on the cost of living for retailers of all sizes who pay this tax.”
Murphy added that the appeal system also needs to “speed up,” as he said three years “is crazy.”
“It’s holding up hundreds of millions in cash flow amongst the retailers who need it most and could invest that money in local community investments.”
1 Comment. Leave new
Closing of the counters will mean that Tesco doesn’t need butchers or fishmongers .Not baking from scratch will also mean that Tesco doesn’t need bakers.Thus no apprentices needed.Bring back counters then they will be a need for apprentices.With customers not buying from the counters.That’s the reason They’re is no need for apprentice butchers,fish mongers or bakers.