Small businesses need extra financial help in the form of tax relief if the government’s latest plans for the expansion of apprenticeships are to be met, the Chartered Institute of Personnel and Development (CIPD) has said. The CIPD welcomed the government’s new initiative to recruit 90,000 additional 16 to 19 year olds as apprentices by 2013. However, the CIPD pointed out that SMEs, which provide the majority of apprenticeships, often lack the financial support needed to run such training. It can cost an employer thousands of pounds to take on an apprentice. The CIPD, therefore, has urged the government to consider re-examining the tax agenda, especially capital gains tax, with a view to offering tax relief on train to gain schemes. The CIPD also welcomed the government’s announcement for companies to deliver in house training programmes equivalent to A Levels. John McGurk, the CIPD’s Learning, Training and Development adviser, said: “The CIPD is delighted the government is formally recognising high quality in house training programmes. With an increasing number of UK organisations facing acute recruitment and skills shortages, many employers see in house training and apprenticeships as a better means of addressing these than externally provided courses.” Mr McGurk added: “Training and qualifications are central to upskilling employees and improving productivity. But any effort to increase skills has to be underpinned by good people management. The assumption is still that more training and qualifications automatically produces higher productivity. However skills development is much less effective if it is detached from people management practices such as job appraisal and reward.” Date:29 January 2008
Content by: Companies Made Simple
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