King’s speech pledge to reform ‘flawed’ levy

17 July 2024  

Proposals to reform the apprenticeship levy were unveiled today as part of the legislative agenda of the new Labour government, outlined in the king’s speech.

Reform of what auto industry leaders have described as the “flawed” levy, along with plans for a Skills England Bill, was announced as King Charles set out the government’s legislative programme.

Sue Robinson, chief executive of the National Franchised Dealers Association, welcomed the proposed overhaul of the apprenticeship levy, but said it was crucial ministers tackled a range of issues affecting the automotive retail sector.

Robinson said the government must also “restimulate” the private EV market and hold talks with the NFDA and the wider automotive sector on any major policy changes related to the ZEV mandate and business rates.

‘Under pressure’

“The intensifying skills shortage continues to detrimentally impact the automotive retail sector,” she said.

“Increasing investment in training EV technicians is essential, particularly as more electric vehicles hit our roads.

In an NFDA survey* conducted in the run-up to the general election, 82% of respondents said technicians were a key concern in terms of skills shortages affecting their business. More than 53% identified sales executive shortages.

The CEO of the Independent Garage Association, Stuart James, said: “The creation of Skills England and the reforms to the apprenticeship levy are particularly important for our sector.

“We are eager to continue our discussions with the new government, hoping to advance positive changes and support for our industry.”

On the government’s plans for an Employment Rights Bill, James said the IGA is ready to work with the government to create a thriving environment where independent garages continue to grow and contribute to the wealth and stability of communities across the UK.”

*See the latest issue of Aftermarket magazine, in print and online now, for a full report of the survey.