IMI looks to auto sector training boost from revamped levy

26 September 2024  

Plans for a new ‘growth and skills’ levy to replace the existing apprenticeship levy have been welcomed by The Institute of the Motor Industry as offering a potential boost for the automotive sector. 

Prime minister Sir Keir Starmer and education secretary Bridget Phillipson confirmed the move, along with proposed ‘foundation apprenticeships’, on September 24 during the Labour Party conference in Liverpool.

The new government had committed to reforming the apprenticeship levy in July.

IMI managing director Azlina Bulmer said yesterday: “Currently, the automotive training workforce is severely under-resourced, and the pipeline of new talent is not being adequately filled by new apprenticeships.

“The Labour Party proposed a ‘youth guarantee’ to provide access to training for all 18- to 21-year-olds which the IMI hopes will include a focus on the automotive sector.

“The automotive industry is a mainstay of the UK economy, and social infrastructure providing 866,000 jobs and £37 billion gross value added in 2023. With 21,000 vacancies and critical skill gaps in EVs and ADAS, urgent support is needed to maintain road safety and meet government targets.”

Bulmer said the IMI will work with ministers and government departments that influence future education, skills and automotive policies, to ensure UK automotive remains a global leader.