Fewer firms are increasing their investment in training and development despite a skills shortage, according to a survey by the Confederation of British Industry (CBI).

The survey found that the proportion of firms intending to increase investment in training and development over the next year has fallen.

It also showed a widespread lack of awareness of key government skills reform programmes, including around the Lifelong Loan Entitlement and the Local Skills Improvement Plan.

Of the firms that do not offer apprenticeships, the key reasons for not doing so were identified as a lack of compatibility between current apprenticeship standards and skill needs; the complexity of administration; and greater relevance of other forms of training.

Matthew Percival, Programme Director for Skills and Inclusion at the CBI, said:

‘Businesses and government need to be pulling every lever to tackle the labour shortages that are holding back growth and putting business investment at risk.

‘Increasing business investment in skills is important and possible, but will require government and businesses to work together to remove the barriers that stand in the way. For example, by remodelling the Apprenticeship Levy into a Skills Challenge Fund – a measure strongly supported by the business community – we can boost employer skills investment and business performance while supporting the government’s skills reforms.’

Internet link: CBI website

Over half of UK companies currently face difficulties in adapting to the new rules for trading goods with the EU, according to a British Chambers of Commerce (BCC) survey.

The survey also found that 77% of respondents who exported were unable to identify any growth as a result of the rule changes.

The post-Brexit trade deal, the trade and co-operation agreement (TCA), sees British and EU businesses facing no tariffs when sending goods in either direction.

However, there is extensive paperwork and red tape, alongside difficulties in getting visas approved for staff (44%).

The BCC has sent the government a report setting out the main issue the TCA is causing with solutions to many of the problems.

These include reaching agreement on the Northern Ireland Protocol and supplementary deals to reduce complexity for food exporters and exempt smaller firms from VAT requirements.

Shevaun Haviland, Director General of the British Chambers of Commerce, said:

‘Businesses want political leaders on both sides to move on from the debates of the past and find ways to trade more freely.

‘This means an honest dialogue about how we can improve our trading relationship with the EU. With a recession looming we must remove the shackles holding back our exporters so they can play their part in the UK’s economic recovery.

‘If we don’t do this now then the long-term competitiveness of the UK could be seriously damaged. It is no coincidence that during the first 15 months of the TCA we stopped selling 42% of all the different products that we used to.

‘Businesses feel they are banging their heads against a brick wall as nothing has been done to help them, almost two years after the TCA was first agreed. The longer the current problems go unchecked, the more EU traders go elsewhere, and the more damage is done.’

Internet link: BCC website

The Plymouth and South Devon freeport has received final government approval.

It will now receive up to £25 million in seed funding to help boost investment and support the growth of regional businesses.

Freeports benefit from a range of measures, including tax reliefs, customs advantages, business rates retention, planning, regeneration and trade and investment support.

Tax incentives include enhanced capital allowances, relief from stamp duty land tax and employer National Insurance contributions for new employees.

Eligible new businesses moving into a freeport tax site, and some existing businesses that expand will also benefit from full business rates relief.

The approval will help accelerate the formation of advanced manufacturing clusters in marine, defence and space sectors, as well as delivering an estimated 3,500 jobs.
Dehanna Davison, Levelling Up Minister, said:

‘Today is a historic day for Plymouth, South Devon and beyond, as the Plymouth and South Devon freeport gets up and running to drive growth and innovation locally and nationally.

‘The freeport is going to shape the fortunes of the Plymouth and South Devon economies by pumping up to £100 million worth of investment across the region.

‘We are maximising the opportunities of Brexit to drive growth and throw our doors open to the world.’

Internet link: PLYMOUTH.GOV.UK

Chancellor of the Exchequer Jeremy Hunt is set to unveil over 30 regulatory reforms to the UK’s financial sector, the government has announced.

The Chancellor will set out plans to repeal, and replace, EU retained laws governing financial services.

Mr Hunt says these reforms will unlock investment and turbocharge growth in towns and cities across the UK.

The plans included a commitment to make substantial legislative progress over the course of 2023 on repealing and replacing Solvency II – the rules governing insurers balance sheets.

As announced in the Autumn Statement, the government will look to announce changes to EU regulations in four other high growth industries by the end of 2023, including digital technology, life sciences, green industries and advanced manufacturing.

Chancellor of the Exchequer, Jeremy Hunt said:

‘We are committed to securing the UK’s status as one of the most open, dynamic and competitive financial services hubs in the world.

‘The Edinburgh Reforms seize on our Brexit freedoms to deliver an agile and home-grown regulatory regime that works in the interest of British people and our businesses.’

Internet link: HM Treasury

The Treasury has announced that Making Tax Digital for income tax self assessment (MTD for ITSA) will be delayed for two more years until April 2026.

MTD for ITSA was due to take effect from April 2024 and would have required all self-employed individuals and landlords with income over £10,000 to report earnings quarterly through the MTD for ITSA system.

However, in a Written Statement, Victoria Atkins, Financial Secretary to the Treasury, confirmed that the mandation of MTD for ITSA will now be introduced from April 2026. Businesses, self-employed individuals and landlords with income over £50,000 will be required to join first. From April 2027, those with income over £30,000 will be mandated to join, the Treasury said.

Ms Atkins said:

‘The government understands businesses and self-employed individuals are currently facing a challenging economic environment, and that the transition to MTD for ITSA represents a significant change for taxpayers, their agents and for HMRC.

‘That means it is right to take the time needed to work together to maximise those benefits of MTD for small business by implementing gradually.’

The Treasury said that the government now intends to review the needs of smaller businesses in regard to MTD for ITSA, and will consider how the initiative can be shaped to meet their needs.

Once the review is finalised, the government will outline plans for any further mandation of MTD for ITSA.

The Treasury also stated that the government will not extend MTD for ITSA to general partnerships in 2025, saying that the government ‘remains committed to introducing MTD for ITSA for partnerships at a later date‘.

Internet link: UK Parliament website