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Small businesses such as individual pubs should be excluded from apprenticeship levy - BBPA submission

06/10/15

The BBPA has called for the exclusion of small businesses such as individual pubs, in the Government’s proposals for an Apprenticeship Levy. These, and other detailed comments, are contained in the BBPA submission to the consultation on the issue. The BBPA has also commented on the introduction of the National Living Wage, in a submission to the Low Pay Commission.


While the BBPA has concerns about the need for a Levy, it says that any scheme should only apply to larger companies, to avoid placing an excessive burden on very small businesses; companies with over 250 employees would be broadly the right approach.


The BBPA has also made a number of detailed suggestions to secure the maximum benefit from the scheme. It wants to ensure that the system of vouchers is designed to enable companies to get more out than they put in, if others are not using their allocation of vouchers, and to allocate their vouchers to partners in their supply chain, if they so wish. Employers must also be given the flexibility to decide where their employees are based within the UK where they work across devolved boundaries, and this must be simple to administer.


On the Low Pay Commission submission on the introduction of the National Living Wage, the BBPA has stressed that the proposals represent a significant ‘unknown’ in terms of costs and impact on the sector. Other measures to mitigate this impact are therefore needed, such as reform of business rates and continued reductions in beer duty.


The association wants to see an evidence-based approach to setting the National Minimum Wage rates for October, to support businesses and employees. The large increase in the apprenticeship rate just introduced needs time to settle in and this will also tie in with the impact of the Apprenticeship Levy.


BBPA Chief Executive Brigid Simmonds comments:


“Apprenticeships are vital for our industry. We need the new Levy system to provide flexibility to allow the large number of apprenticeships offered in our industry to develop and grow, so we need legislation that encourages this process that is not too burdensome for smaller businesses. The potential cost of the Living Wage makes it all the more important that the Government retain a strong focus on tax cuts and other regulatory burdens.”



Resources

» Apprentice levy response
» BBPA_LPC final



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For further information contact:

Neil Williams
Head of Media
nwilliams@beerandpub.com
Tel: 020 7627 9156 / 07974 249 779


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