Rishi Sunak has committed to increasing apprenticeships by up to 20,000 through a series of reforms, including fully funding training for young individuals and reducing bureaucracy for

small enterprises.

Starting April 1st, the government will cover the entire cost of apprenticeships for individuals aged 21 or younger at small businesses. This initiative will be supported by £60 million in new investments for the next year.

In response, Labour criticized the Tories' "economic failure" over the past 14 years, emphasizing the increasing challenges faced by small businesses.

Addressing a conference for small businesses in Warwickshire, the Prime Minister outlined a set of reforms designed to "unleash a wave of opportunities." Alongside funding apprenticeships, the government plans to increase the amount of funding that companies paying the apprenticeship levy can transfer to other businesses.

The apprenticeship levy, introduced in 2017, is paid by large firms to create more apprenticeship opportunities. However, concerns have been raised by business groups regarding unspent funds each year.

Effective April 6th, businesses will be able to transfer up to 50% of unspent funds, doubling the current allowance of 25%.

With adjustments to the levy and increased training investments, the government anticipates facilitating up to 20,000 additional apprenticeships.

Rishi Sunak emphasized the government's commitment to making the UK the "best place to do business," asserting that these measures will have a substantial impact on businesses and entrepreneurs nationwide.

Further reforms include a 50% rise in the thresholds determining a company's size, aiming to classify an additional 132,000 businesses as small and medium-sized enterprises (SMEs), thereby exempting them from non-financial reporting obligations.

These changes, expected to take effect in the autumn, could save SMEs £150 million annually, alongside other efforts to streamline reporting requirements.

Business Secretary Kemi Badenoch highlighted the significance of SMEs as the "engines of economic growth," pledging the government's commitment to support these businesses to accelerate growth.

The government's initiatives will be discussed with business leaders at the conference, which will bring together around 150 SMEs and business groups.

Additionally, the Prime Minister announced the establishment of an industry-led taskforce aimed at enhancing private investment in businesses led by women.

Labour's shadow business secretary, Jonathan Reynolds, criticized Conservative economic policies, stating that it's increasingly challenging for small business owners to succeed. Labour aims to address these issues by implementing reforms such as business rates adjustments, addressing late payments, boosting exports, and ensuring fair access to public contracts for small businesses. Photo by Simon Walker / No 10 Downing Street, Wikimedia commons.