Importance Score: 45 / 100 🔵
Airbus Calls for Apprenticeship Levy Reform to Support Small Businesses
A senior executive at Airbus‘s primary manufacturing facility in Bristol has appealed to the government to simplify the process for smaller enterprises to employ apprentices. According to the Airbus representative, the current apprenticeship levy imposes undue limitations on numerous companies seeking to recruit and train young individuals, hindering wider workforce development.
Levy Structure Hinders Smaller Firm Participation
Sue Partridge, a leading figure at Airbus, emphasized that while Airbus itself could expand its apprenticeship programs, the capacity of its ‘entire supply chain’ to cultivate new talent is crucial. She highlighted that the existing structure of the apprenticeship levy, a 0.5 percent tax on the payroll of companies with an annual wage bill exceeding £3 million, presents financial obstacles for smaller organizations.
Numerous businesses have voiced concerns that the levy’s funds are restricted to specific training categories, limiting their ability to access and utilize these resources effectively for broader skills development.
Potential for Wider Apprentice Placement and Skills Enhancement
Partridge, who began her career as an apprentice at Airbus in 1989, being the sole woman among a hundred apprentices, noted the high demand for their apprenticeship schemes. She suggested a collaborative approach: ‘Thousands of individuals apply to our apprenticeship programs. If we could redirect some of these highly qualified candidates to other companies, it could create a mutually beneficial scenario.’
Furthermore, Partridge pointed out the levy’s potential for ‘upskilling’ current employees, stating, ‘Our long-serving staff need to become proficient in emerging technologies to maintain a competitive edge.’
Airbus’s UK Presence and Economic Contribution
Airbus is a major employer in the UK, providing jobs for more than 10,000 people. Many are based at its key manufacturing plants in Filton, Bristol, and Broughton, North Wales, which specialize in producing wings for commercial aircraft, playing a vital role in the nation’s aerospace industry.
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