Business News Apprenticeships not just for young


Businesses need to change their view of apprenticeships being only for young, inexperienced trainees, according to the dean of Aston Business School. Professor George Feiger reacted


to criticism that universities were exploiting the apprenticeship levy to recruit older, more experienced workers through MBAs and high- level courses. Professor Feiger said it was wrong


to see apprenticeships as being only for the young given that poor management is one of the main causes of the UK’s low productivity.


‘A core aim behind the apprenticeship levy is to jump start workplace performance’


He said: “One of the country’s


greatest challenges is our dwindling productivity – and a core aim behind the apprenticeship levy is to jump start workplace performance by injecting much needed skills. “One of our biggest skill deficits


is in management. 71 per cent of businesses do not train first-time managers according to the


Chartered Management Institute. The high-profile collapse of huge companies like Carillion should be a sharp reminder of the need for businesses to invest in leadership skills. The idea that an apprenticeship can only be for a young, inexperienced trainee is old- fashioned. The apprenticeship levy has broadened the definition to encompass skills that do not fit the traditional mould but are nonetheless vital to jump-starting productivity. “The evidence is clear – better managers lead to more efficient workforces, and if firms believe this is a barrier to growth it is right that they should be free to spend their levy funds as appropriate, just as if a software company wanted to fill a shortage in coding skills.” Aston University was the first in


the UK to launch degree apprenticeships, and are currently the only university to have produced degree apprenticeship graduates in partnership with global consultancy firm Capgemini. The university recently reacted


to the government cap on funding for Senior Leader Masters Degree Apprenticeships by unveiling a new version of its existing Executive MBA repriced to match the £18,000 tariff. The move means that employers can use the levy to send their staff to study for an Executive Apprenticeship MBA – one of the first MBA programmes to be created for apprentices. The programme’s first cohort started in April. Professor Feiger added: “Our


‘levy-friendly’ Executive Apprenticeship MBA opens up our expertise to ambitious senior staff who want to learn how to be an effective leader. The solution to


Professor George Feiger: Dwindling productivity is a ‘challenge’


improving a business’s productivity has to start at the top, and by widening access for senior managers we are providing a valuable opportunity which is good for companies, good for careers, and good for the nation’s productivity.”


Emily Stubbs: More flexibility needed


Levy reform welcome - but more needs to be done


Further changes to the apprenticeship system which will provide greater flexibility for levy-paying businesses have been outlined in a document by the Greater Birmingham Chambers of Commerce. The apprenticeships Hot Topic, sponsored by Aston University, has


been updated to reflect a change to the system which will allow organisations paying the Apprenticeship Levy to transfer 10 per cent of their funds to another employer. The transfers are aimed to give employers paying the Apprenticeship


Levy more flexibility in how they spend their apprenticeship service funds. It means levy payers can help other employers take on apprentices and, in turn, increase the skills base in their supply chain or sector. A levy paying firm can opt to fund apprenticeships in one other organisation at a time and will transfer funds on a monthly basis. Employers that do not pay the levy will be able to register for an


apprenticeship service account, enabling them to receive a transfer and start adding details of their apprenticeships to this account. Costs beyond the funding band maximums set by government must


be paid in full by the recipient business. Transferred funds must also pay for the entirety of an apprenticeship, with no co-investment apart from a 10 per cent government top-up which is factored into the calculation of transferrable funds. Emily Stubbs, policy and patron advisor at the Greater Birmingham Chambers of Commerce, said: “With skills gaps in Birmingham an ongoing issue, and many businesses reporting hiring difficulties in our Quarterly Business Surveys, we are encouraged by this development. We hope it will mean that more levy funds can be fully utilised in the region. However, going forward, we would like to see further flexibility on what organisations can spend their levy funding on, and the vast limitations to transferring funds reduced. “As these developments are announced, the Chamber is growing


significantly concerned by the increasing complexity of the apprenticeship system, and we call on the Government to take steps to simplify it.”


Government urged to act after GDP slowdown


Business leaders in Greater Birmingham say it is time for the Government to “be bold and fix the foundations of the economy”, after the UK suffered its weakest period of GDP growth in five years. According to new figures, UK


gross domestic product increased by 0.1 per cent in quarter one (January to March), compared with 0.4 per cent in quarter four of 2017. The Office for National Statistics’


estimate showed that construction was down by 3.3 per cent in the


6 CHAMBERLINK June 2018


first three months of the year, while manufacturing growth slowed to 0.2 per cent. Production, which includes


electricity and gas supply in addition to manufacturing, rose by 0.7 per cent as a result of households using more energy during the cold weather. Services increased by 0.3 per cent. Chamber chief executive Paul


Faulkner said: “These results make for disappointing reading as we witnessed the slowest pace of GDP


growth for almost five years mainly predicated on a fall in manufacturing growth – a trend we saw mirrored in our latest Quarterly Business Report. “While it would be convenient to


blame the slowdown on the period of bad weather we saw in February, it’s worth bearing in mind that this was likely to have been offset by an increase in energy production as people kept their heating on for longer periods during the snap blizzard.


“Only last month, an interest rate


rise seemed a certainty – however, given the fact we are seeing a drop in inflation levels and a slower pace of economic growth, any projected uplift must surely be put on hold. “In light of these results, we


would urge the Government to be bold and fix the foundations of the economy by investing in first class infrastructure projects and upskilling our workforce – the future prosperity of our country depends on it.”


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