Retailers call for levy system reform to secure UK food supply

In a letter to the government, the three trade bodies said reform to the system would allow businesses to train more domestic workers to fill the vital skills gaps, which would “foster greater resilience, support the nation’s food security and benefit the economy”. 

The letter added that reform could help the country’s food supply chain, which has been hit by acute labour shortages since the UK’s exit from the EU and the labour market being affected by the pandemic. 

The letter called for more flexibility in the levy system as businesses now can only spend money set aside under the scheme in a very restricted way such as not being able to fund any course shorter than a year in duration. 

The BRC said this “has cost the UK many thousands of training opportunities and billions of pounds of potential investment into the British labour market at a time when it is urgently needed”.

The letter called on the government to widen the apprenticeship levy into a broader skills levy, giving retailers more flexibility to spend their funds on shorter, more targeted courses.   

BRC chief executive Helen Dickinson said: “Why is it that the very system that exists to enable training opportunities serves as the total opposite? Businesses across the food supply chain have long been calling for reform to the apprenticeship levy.

“The government should stop dragging its feet so businesses can upskill our workforce, help safeguard food security in the UK, streamline costs and respond to the needs of the economy. The apprenticeship levy is nothing more than a tax on business and it must be reformed.” 

Tesco chief executive Ken Murphy said: “Reform of the apprenticeship levy could not only unlock high-quality jobs in our food supply chains but also help safeguard Britain’s food security for the future. I would urge the government to look again at the practical barriers to skills development under the current system because it is not delivering for food businesses or their employees.”