Apprentices: Taxation

Treasury written question – answered on 14 March 2023.

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Photo of Emma Hardy Emma Hardy Labour, Kingston upon Hull West and Hessle

To ask the Chancellor of the Exchequer, whether the amount allocated as public spending to the devolved nations from the UK Apprenticeship Levy in 2019-20 was £460 million; and what estimate he has made of the figures for 2020-21 to 2023-24 inclusive

Photo of John Glen John Glen The Chief Secretary to the Treasury

The UK Government and devolved administrations agreed an Apprenticeship Levy funding deal, based on population share.

Under this agreement, the UK Government uplifted Spending Review 2015 settlements as set out in Block Grant Transparency to ensure the devolved administrations received a full population share of forecast Levy funding from 2017-18 to 2019-20. This population share amounted to £1.3 billion across all three devolved administrations over the three-year period, with £460 million allocated in 2019-20.

Beyond 2019-20, it was agreed that the normal operation of the population-based Barnett formula would deliver a similarly fair outcome rather than a bespoke arrangement being required.

The devolved administrations received record settlements at the 2021 Spending Review and are well funded to deliver devolved responsibilities. Those settlements are still growing in real terms this year, and over the three-year spending review period, despite inflation being higher than expected.

It is for the devolved administrations to decide how to allocate their funding in devolved areas.

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