Aftermarket September 2022

NEWS The return of more than £3.3 billion in unspent Apprenticeship Levy funding to a Treasury “black hole” over the last three years has led to calls from across the automotive sector for the system to be urgently reformed. According to a Freedom of Information request by the London Progression Collaboration (LPC), since May 2019, employers in England across all industries have seen unused Levy funding clawed back to the Treasury at a rate of £95 million per month, totalling £1.1 billion per year. LPC Director Anna Ambrose said: “Since 2019, over £3 billion in funds that businesses haven’t used appear to have been lost to a Treasury black hole. This transparency deficit risks undermining confidence that money for apprentices is being used in the most effective and fair way.” IGA Head of Member Services Frank Harvey said: “The IGA is disappointed at the news that £3.3 billion of Apprenticeship Levy funding is being absorbed by the Treasury. While it has always been the case that unused Levy funds would be returned to the Treasury, times have changed since the Levy rules were written, and the IGA feels that the unused funds should be made available to encourage and support gr ass roots apprenticeships. “At a time when the independent gar age sector is crying out f or skilled, competent technicians , to hear that much-needed apprenticeship funding is unused and is being returned t o the go vernment’s coffers, only serves to indica te the inadequacie s of the much-maligned Appr enticeship Levy.” Frank added: “R eversing the decline o f technical skil ls must be a priority f or the government , and appr enticeships ar e essential t o attract the ne xt gener ation into technical indus tries. The IGA w ould like t o see an urgent review of the Levy, as promised b y the then- Chancellor Rishi Sunak in his Spring Statement , in order to stem the decline o f technical and cr aft skills, not only in the automotive sector but acr oss all UK industries.” IMI CEO S teve Nash observed: “It ’s clear that many of the underlying cause s of the current skil ls shortage s in the aut omotive sector are not short t erm, so busine sses must think longer t erm and no t just about their immedia te chal lenges. The unspent bil lions of levy funds r eturned t o Treasury in the pas t three years wil l have largely been fuel led by the pandemic and a halt on tr aining , but the industry needs to make up for lost time and the funds are there to do so. “Our own data confirms that in the next decade the shortfall of skilled workers in the automotive sector will be in the tens of thousands. To counter this, the Department for Education needs to support employers by extending the period of time the levy funds remain in their digital accounts to enable them to act. Apprenticeship recruitment is crucial for the UK economy, but the automotive sector in particular as they can really help to build the skilled workforce that’s going to be so badly needed in the years to come.” Steve added: “Our Automotive Apprentice ROI Calculator clearly demonstrates that apprentices more than pay for themselves within their training period, and that they become productive within their first year. Apprentices can make a valuable contribution to the more immediate workforce challenges too. So, it makes no sense to let levy funds go unspent.” Previous research by the LPC showed that since 2014-15, entry-level apprenticeships have fallen by 72% in England, while apprenticeship starts for under-19s have fallen by 59%. 4 AFTERMARKET SEPTEMBER 2022 www.aftermarketonline.net Black hole fund? Apprenticeship Levy in crisis as £3.3 billion clawed back City ULEZ expansion: Garages concerned Plans to extend London’s Ultra-Low Emissions Zone (ULEZ) next year, are meeting with fierce opposition from businesses in the capital, a survey from the IGA has found. The ULEZ is due to expand on 29 August 2023. The IGA surveyed its members based inside the M25 on the proposed extension. 95% said they did not support the proposal, with 88% going on to say that the extension would have an adverse effect on their business. 86% said they would expect to see job losses as a result Commenting on the outcome of the survey, IGA Chief Executive Stuart James said: “Our members overwhelmingly feel that extending the ULEZ would negatively affect their business and customers, to the point where some are worried that they will not be able to afford to keep their business trading.”