Devolution and the apprenticeship levy


Nationally, leading politicians from Scotland, Wales and Northern Ireland have added their concerns about the levy. Employment and skills ministers from Scotland, Wales and Northern Ireland fear the levy has the potential to undermine devolved apprenticeship policies. They are looking for the best method for fairly apportioning the levy raised across the devolved administrations, including transparency around UK departmental budgets. 


They will also ask for content and timelines for the legislation that will introduce the levy into statute and stress the need to ensure the changing apprenticeship landscape will be clear to cross-border employers and providers. 


Julie James, Welsh government deputy minister for skills and technology said: "We have been very clear from the outset that the Welsh government has serious concerns about the apprenticeship levy and the impact it will have on the apprenticeship system here in Wales. The levy is an unwelcome new tax burden for Welsh employers, and means Welsh public services will have to pay money back to the Exchequer when they are already under pressure." 


Northern Ireland employment and learning minister, Stephen Farry said: "Along with my ministerial colleagues from Scotland and Wales I am concerned that the imposition of the apprenticeship levy could have unintended consequences for the devolved administrations. This levy will be a further tax burden on large businesses and this could impact negatively on the UK's and Northern Ireland's ability to compete globally and to attract new business." 


Roseanna Cunningham, Scotland's cabinet secretary for skills, added: "The introduction of the levy remains a matter of fundamental concern for us. It encroaches on our devolved responsibilities and is causing concern for employers.” She added that “the UK government has no control over how our administrations provide apprenticeships, and to imply otherwise by collecting what amounts to an employment tax is misleading for any employer with operations outside England”.