“With the sector facing a ticking employment “time bomb” – 64% of transport and storage businesses are now facing severe labour shortages – the levy needs urgent reform to enable businesses to access this vital resource. According to FTA, the apprenticeship levy should be transformed into skills levy; this would allow previously unused funds to be utilised for more flexible training programmes.”
The Government’s apprenticeship levy is a wasted resource and become just another tax for businesses, says the freight sector.
In response to figures obtained by the BBC that reveal employers are failing to use hundreds of millions of pounds that was intended for training apprentices, Sally Gilson, Head of Skills Policy at FTA, said, “As the business organisation representing the logistics sector, FTA needs the government to realise that the hundreds of millions of pounds in unused apprenticeship funding points towards a flaw in the current system.
It has also criticised the Government’s proposed immigration policy which will make it harder to recruit foreign drivers and it wants exceptional status to be given to them or the economy risks grinding to a halt due to the labour shortage.