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UK Government has planned for a levy on larger employers to fund apprenticeships and in the last week budget apprenticeship levy was announced. Business leaders say that it would not deliver the high quality training the country needs and the Confederation of British Industry (CBI) said that it will not solve skills crisis but would also do little to help smaller firms.

A survey of more than 300 firms, employing over a million people, found that over two thirds believed they will need staff with higher level skills in the coming years. Only half expressed their concerns on their ability to recruit suitably skilled workers.

Katja Hall, deputy director general of CBI said that the Government has set out its stall to create a high-skilled economy, but firms are facing a skills emergency now, threatening to starve economic growth. High-growth and high-value sectors with the most potential like construction, manufacturing, science, engineering and technology are under most pressure.

It will not equate to higher quality or deliver the skills that industry needs. Levies on training already exist in the construction sector where already skills shortages prevails. The best way to plug the skills gaps and provide quality training is to speed up existing apprenticeships reforms already under way and encourage smaller firms to get involved.

Rod Bristow, president of learning company Pearson said that the Government is right to be ambitious about apprenticeships. We need more higher-level apprenticeships in high growth sectors like biotech, engineering and technology.