Chancellor Philip Hammond announces u-turn on apprentices tax in a bid to build bridges with businesses
Mr Hammond will also plough in an extra £120m to boost the number of science and high-tech apprenticeships
PHILIP Hammond will announce a U-turn on the apprentices tax on companies in a bid to rebuild bridges with business.
The Chancellor’s review of the Apprenticeship Levy – a flagship policy of his predecessor George Osborne – is one of a series of pro-enterprise moves that he will unveil in his conference speech.
The olive branch comes after bitter fallouts with the Government over attack on boardrooms and Brexit.
The Government also suffered a withering attack on its own conference stage from TV business celebrity and former Labour minister Lord Jones.
Warning the squabbling Tories that they were on the verge of surrendering Britain to hard left leader Jeremy Corbyn, Digby Jones told the conference: “You've got to unify and stop it because you've got a far greater threat than Brexit coming down the path.
"That is that Jeremy Corbyn is to wealth creation what Diane Abbott is to mathematics."
Companies have complained that the Apprenticeship Levy - 0.5% of their payroll costs - has loaded extra costs on them while at the same time seen the number of new apprentices plunge.
Mr Hammond will also plough in an extra £120m to boost the number of science and high tech apprenticeships, and set up £30m scheme to encourage big business to mentor small ones.
Standing up for capitalism and wealth creation should be the Tories’ response to Mr Corbyn’s Socialist revolution rather than aping him, Mr Hammond say today.
The Chancellor will tell the Birmingham gathering: “Too many people have experienced years of slow wage growth, felt less secure in their jobs and seen the housing market spiral beyond their reach.
And as they look around them, they feel a growing concern that they are falling behind.”
“So the challenge is to ensure that 21st Century capitalism delivers for them; to convince them that our vision of Britain’s future can meet their aspirations and that our plan, unlike Labour’s, will actually deliver a better tomorrow for them and their families.”
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Relations between the Tories and business bosses reached a new low over the summer when then Foreign Secretary Boris Johnson was quoted as saying “f*** business” over bosses’ concerns about a hard Brexit.
Welcoming Mr Hammond’s announcements, Institute of Directors Director General Stephen Martin said: “The Chancellor looks to be kicking off the conference with a business-friendly tone and we hope this will continue throughout the week.
“It is no secret that at times business leaders have felt neglected over the past few months and we hope these announcements will mark a change in direction by recognising the contribution they make to our economy.”
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