Apprenticeship Levy (Additional Apprenticeships)

– in the Scottish Parliament at on 5 December 2018.

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Photo of Rhoda Grant Rhoda Grant Labour

13. To ask the Scottish Government how many additional apprenticeships have been funded by the apprenticeship levy. (S5O-02651)

Photo of Jamie Hepburn Jamie Hepburn Scottish National Party

In 2017-18, there were 27,145 modern apprenticeship new starts in Scotland, which was up from 26,262 the year before. The increase was achieved in the context of a reduction in available public spending leeway in Scotland as a result of the introduction of the United Kingdom Government’s apprenticeship levy in April 2017. Due to the public sector liability for the levy, public spending leeway was reduced by some £30 million in 2017-18. Despite that, the Scottish Government continues to utilise the notional sum allocated to the block grant that is related to the levy entirely for employability and training-related activity. This year, we will support 28,000 modern apprenticeship starts.

Photo of Rhoda Grant Rhoda Grant Labour

That seems an incredibly small amount, given the levy that is being charged. I have been speaking to many organisations that have expressed disquiet about the levy. Some pay in and get very little out; others cannot access the scheme at all because the age profile of their staff and apprenticeships does not fit the criteria

. It is not clear who is actually benefiting from the levy. Will the minister sit down with those organisations and speak to them about how they can best use the levy to upskill their workforce?

Photo of Jamie Hepburn Jamie Hepburn Scottish National Party

I will sit down any time with any organisation that wants to discuss those matters with me

—that is what I do. It is unfortunate that Rhoda Grant seems to be susceptible to the idea that has been perpetuated by the UK Government that the levy somehow brought forth a bounty of new money for the Scottish Government to spend—it did not. The money that came forward largely replaced existing expenditure; in fact, it was a new mechanism by which to raise the funding.

We are delivering more apprenticeships than ever before. We delivered 27,145 last year and it will be 28,000 this year, and we will deliver 30,000 by 2020. I have already made the point about the significant reduction in the number of apprenticeship starts in England, which was down nearly 25 per cent between August 2017 and July 2018. Given that the levy was predicated on the assumption of an uplift in the number of apprentices in England and was nothing to do with our policy in Scotland, and given that there is clearly a failure to increase the number in England, one might ask where that money in England is going. A cynic could argue that it is nothing more than a UK Government Treasury tax ploy.

Photo of Jamie Halcro Johnston Jamie Halcro Johnston Conservative

Following my letter to the First Minister about the hurdles that are faced by small businesses in accessing apprenticeships, the minister replied that he had met with the Federation of Small Businesses in July and that his officials would work with Skills Development Scotland to explore the scope to focus apprenticeship week on small business opportunities. Given that the next apprenticeship week is only a few months away, will the minister update the Parliament on what proposals have been made for it?

The Deputy Presiding Officer:

When I ask for short questions, that does not mean that members should just speak faster.

Photo of Jamie Hepburn Jamie Hepburn Scottish National Party

I will take that on board, Presiding Officer.

The dialogue continues. Apprenticeship week will come in due course. There is on-going dialogue between the Government, the FSB and SDS. I am clear that our small and medium-sized enterprises should benefit from apprenticeships, and they have that opportunity. I said that I am always willing to engage with the organisations that Rhoda Grant alluded to, and I will always be willing to discuss those matters with the FSB.