Seven food retailers and three leading trade bodies have urged the government to reform the Apprenticeship Levy system.
The British Retail Consortium (BRC), the National Farmers Union (NFU) and UKHospitality (UKH) along with leading UK grocers said the reform would allow businesses to train up more domestic workers in order to fill the vital skills gaps.
It claimed that this would “foster greater resilience, support the nation’s food security, and benefit the economy”.
The move comes as the food supply chain has been hit with labour shortages in recent years, according to the BRC.
It explained the shortages meant labour costs had risen, creating inflationary pressure that has contributed to higher prices for shoppers.
While the BRC said the reform could help plug shortages, it insisted the current system was too inflexible as funds can only be spent in a very restrictive way.
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The trade bodies and food retailers called on the government to widen the levy into a broader skills levy, to allow businesses to spend their funds on a wider range of high quality, accredited courses.
While it claimed the changes would not cost the government, it said they would mean food businesses could invest more in their workforces to help them respond to the needs of food supply chains.
BRC CEO 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”.
She continued: “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”.
Tesco CEO Ken Murphy added: “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.”
Asda chief people and corporate affairs officer Hayley Tatum said that greater flexibility was needed around where levy funds cam be distributed.
“Asda would welcome reform that would make it easier for businesses to spend Levy funding as intended – offering new opportunities across the country as well as upskilling the existing workforce,” she said.
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