One of the Government’s post-pandemic priorities is to ‘level up’, and the Spring Budget includes measures laying the foundations of our future economy. The Government is taking action to ensure that young people do not lose out on teaching due to the pandemic, and to give people the skills they need to get better jobs including increased funding for apprenticeships. Small businesses will be supported through access to training they require to be more efficient, digital and productive, while investment will be encouraged through tax breaks.
The Government is committed to making the UK the best place in the world for innovative companies, with measures including the modernisation of the immigration system to encourage high-skilled workers and a fund for high-growth companies.
See below a summary of the key points regarding education, skills and business growth, or read the full Spring Budget here.
Education catch-up funding
Following on from the Government’s £1 billion education catch-up package announced last year to tackle the impact of lost teaching time during the pandemic, an extra £700 million will now be available. This includes a £300 million Recovery Premium for state primary and secondary schools, £200 million to expand tutoring programmes and deliver early language support, and £200 million for secondary schools to deliver face-to-face summer schools.
Work placements and apprenticeships
An additional £126 million will be provided in England for high quality work placements and training for 16-24 year olds in the 2021/2022 academic year. Employers who provide trainees with work experience will continue to receive £1,000 per trainee.
Employers who hire new apprentices between 1 April and 30 September 2021 will receive £3,000 per new hire. This is in addition to the existing £1,000 payment provided for all new 16-18 year old apprentices and under 25s with an Education, Health and Care Plan. The Government will also introduce a £7 million fund from July 2021 to help employers set up and expand portable apprenticeships, enabling people to work across multiple projects with different employers.
Help to Grow: Management & Digital training
A new UK-wide management programme will be available to upskill 30,000 SMEs over the next there years, 90% subsidised by the Government. Business schools will deliver a national curriculum over 12 weeks along with mentoring from experienced business professionals, encouraging companies to grow and thrive.
A similar programme will launched to help 100,000 SMEs save time an money by adopting productivity-enhancing software, transforming the way they do businesses. Businesses will receive a voucher covering half of the costs of approved software up to a maximum of £5,00, along with free impartial advice delivered through an online platform.
Both programmes will commence by the autumn, interested businesses can register here: https://helptogrow.campaign.gov.uk/
Super Deduction
From April 2021 until 31 March 2021, companies investing in qualifying equipment will benefit from a 130% first-year capital allowance which will cut tax bills by up to 25p for every £1 they invest. Investing companies will also benefit from a 50% first-year allowance for qualifying special rate (including long life) assets.
High-skilled migration
The immigration and visa system is being modernised to help the UK attract and retain the most highly skilled, globally mobile talent from around the world. This will encourage researchers, engineers, scientists and those in the tech sector to work at UK firms and set up innovative businesses in the UK, making the country the best place in the world for high growth companies. Small firms using the visa system for the first time will receive practical support, and the immigration system will become easier to use.
Future Fund: Breakthrough
£375 million will be committed to introduce a new direct co-investment product to support the scale up of the most innovative, research and development-intensive businesses. This will fill the funding gap for technology businesses, where 1% growth could boost the company by £38 billion. The British Business Bank will take equity in funding rounds of over £20 million led by private investors to ensure these companies can access the capital they need to grow and bring prosperity to communities across the UK.