Details of a new apprenticeships levy have been unveiled by Chancellor George Osbourne in his Spending Review.

In his Autumn Statement, Mr Osbourne announced businesses will contribute 0.5% of their total wage bill towards paying for 'on-the-job' training from April 2017.

A £15,000 allowance for employers will mean the levy will only be paid on employers' pay bills over £3 million, therefore less than 2% of UK employers will pay the levy.

It is anticipated the levy will raise £3 billion per year, forming part of Government plans to create three million extra apprenticeships by the end of the decade.


All 'on-the-job' training programmes will be overseen by Business Secretary Sajid Javid, who will set up a new business-led body to ensure all programmes are of a high standard.

Other measures announced by the Chancellor include doubling the housing budget to £2bn per year and reforming the planning system which will see public land released for the development of 160,000 homes and unused commercial land earmarked for starter homes.

In addition, transport spending will be increased by 50% to £61m, allowing the start of construction of the High Speed 2 rail project.

James Wates, Chairman of the Construction Industry Training Board (CITB), said: "While today's announcement regarding the Apprenticeship Levy creates a challenging environment for CITB across Great Britain, we will continue to support industry and work with government to ensure the best possible outcome.

"Our next step is to engage in extensive consultation with employers and work out the most effective way to continue providing the construction industry with the skills and training it needs."

(LM/CD)