Private sector firms must 'step up' over delivering apprenticeships, says Vertu Motors boss

Robert Forrester, chief executive of Vertu Motors, criticised the Government’s controversial Apprenticeship Levy scheme which has been running for the past five years but added that companies should take a more proactive approach to the issue themselves.

He made the comments as he appeared on a live recording of the Business Unmuted podcast hosted by Recognition PR founder Graham Robb at the Vertu Jaguar Land Rover showroom in Leeds.

The Apprenticeship Levy was introduced in 2017 and takes 0.5 per cent of the salary bill from major employers. A further 10 per cent is added from Government funds to create a pot for the company to spend on providing training and improving skills.

Funds that are not used within two years expire and go to Government.

There have been widespread calls for reform of the scheme, with a recent report from thinktank Onward highlighting the number of entry-level apprenticeships has fallen by more than half (56 per cent) since 2011.

Mr Forrester said the Government would be better to focus on improving educational standards in schools instead of involving themselves in the delivery of apprenticeship schemes.

“We don’t use any Government schemes apart from the fact we were forced to pay the Apprentice Levy which made not one jot of difference to how we did anything actually,” he said.

"But we took on 250 apprentices last year and will continue to take on lots and lots of apprentices.

"We have to access them through the Apprentice Levy because the money was taken off us.

"I didn’t necessarily agree with that policy if I’m honest. It didn’t change our view on apprentices.

"Apprenticeships are complex these days as you can leave school at 16 or 18 and I met a chap earlier on who is doing a degree apprenticeship where he is off to Northumbria University doing business management as part of the job role.

"I don’t think it is primarily the Government’s job to train the workforce.

"What the Government has got to do is produce people at 16 and 18 who have the requisite skills to join the workforce and then the employer should be training them.

"That’s what we do. Are schools producing the right people? It is debatable because things move on so quickly – we need data analysts, digital marketers, we need technicians who are very bright and able to use software.

"You need core skills and you need science subjects, some degree of mathematical ability and English skills. It is then up to employers to design schemes. I don’t think it needs the Government to do that. People who keep saying the Government needs to do more and more but the private sector needs to step up and actually do it.

"I don’t think the public sector is very good at deciding what we need because they are always 15 years behind. We need very good academics and comprehensive schools with the right leadership producing people with talent, drive and energy. That is where the North I think struggles actually.”