The capital’s skills shortages and productivity challenges may continue unless the present Apprenticeship Levy is reformed, London government and employers have warned.

In 2017 the government introduced the Apprenticeship Levy to give employers a greater role in addressing skills shortages and help achieve the government’s target of 3 million apprenticeships by 2020.

A recent survey showed that of levy-paying businesses in London, 42 per cent did not expect to use any of their levy funds in the next year and a further 40 per cent of employers expect to spend less than half of the funds. This suggests that a significant amount of Apprenticeship Levy funds will not be spent in London, resulting in a loss of much-needed investment in training.

This is why a coalition of the capital’s local leaders and businesses – including the London Chamber of Commerce and Industry (LCCI) and London First – have come together to write to the Skills Minister, Anne Milton and the Chancellor, Philip Hammond, to raise their concerns and propose ways to improve how the levy works.