Business leaders brand flagship policy an ‘apprentice tax’

The flagship policy – which Labour believes could create 125,000 new apprenticeships over the next five years – was unveiled by leader Ed Miliband, who announced it will form part of an immigration bill in the first year of the next Parliament if he wins the 2015 general election.

But the British Chambers of Commerce denounced it as an “apprentice tax”, while the Institute of Directors said it was “completely removed from reality”.

The Confederation of British Industry described as “unworkable” a separate proposal, floated by Mr Miliband, for varying minimum wage rates in different sectors of the economy.

Conservatives said the apprenticeships scheme would breach EU law unless the posts were open to nationals from the other 27 member states, in which case it might drive up immigration.

‘Labour left Britain with immigration chaos. They haven’t apologised,” said Skills Minister Matthew Hancock.

“Now they are demanding an unworkable apprenticeship scheme that would be illegal unless it was open to all EU citizens – encouraging more immigration. It’s hard-working British people who would pay the price.’

Labour dismissed Mr Hancock’s comments as “ludicrous” and said the Conservatives were putting themselves into the position of rejecting a policy which could create tens of thousands of apprenticeships.

Shadow Immigration Minister Chris Bryant confirmed that the posts would be open to applicants from the European Economic Area, but said the bulk were expected to go to UK workers.