Backing for cash boost to apprentice scheme

During his speech to outline the Comprehensive Spending Review, Mr Osborne revealed that funding for adult apprenticeships will be increased by 250m a year by 2014-15, which will help 75,000 new apprentices a year.

The move was broadly supported by Yorkshire's business leaders, although some warned that apprenticeships were not suitable for all businesses.

Janice Haigh, the Yorkshire and Humber policy chairman of the Federation of Small Businesses (FSB), said she welcomed measures to increase the number of adult apprenticeships.

However, the FSB believes the "missing link" in the Government's deficit programme are policies to create growth by providing incentives for small businesses to innovate and hire more staff.

Andy Wood, a partner who is head of assurance at Grant Thornton, said the move to increase apprenticeships was "very welcome" and would go down well with his client base, which includes services companies, engineers and manufacturers.

"It's going back to the good old days in many respects,'' he said. "It's about changing people's views and expectations. A levels and university may not be the right route for everybody.

"The more businesses can dictate where the money is spent on apprenticeships, the better."

However, a spokesman for the Institute of Directors in Yorkshire and the Humber said: "The decision to increase funding by 250m a year by 2014-15 on new adult apprenticeships is questionable.

"The Government should be wary of introducing too much bias in the way it favours, funds and promotes apprenticeships: they are not a universal training solution and are not suitable for all types and sizes of organisation."