UK government urged to address ‘inflexible’ tax to boost creative apprenticeships

The House of Lords Communications and Digital Committee have urged Prime Minister Boris Johnson to support the provision of apprenticeships in the creative sector. This follows concerns that the apprenticeship levy, a tax on employers to support training, is failing to have the desired effect on recruitment in the arts, media and advertising.

UK government urged to address ‘inflexible’ tax to boost creative apprenticeships

Britain’s creative industries need a boost

• The open letter was penned by committee chair Lord Gilbert of Panteg, who warns that current measures are failing to produce results.

• Gilbert wrote: “Our world-leading creative industries can offer young people highly rewarding jobs which are not at risk of being supplanted by artificial intelligence. However, the apprenticeship levy has so far failed to exploit these opportunities.“

• Remarking on failure current policies to create sufficient numbers of apprenticeships in sectors such as theatres, advertising, TV production and journalism Gilbert concluded: “Its inflexibility has made it difficult for small businesses and businesses running short-term projects to use the scheme.

• “We have recommended that businesses should be able to pool funds through industry training agencies and that, as so much training is ‘on the job’, they should be able to spend some of the funds on apprentices’ wages.”

What impact could it have on the advertising industry?

• Should Johnson prove receptive to the idea this would enable businesses to pool resources via industry training agencies, providing the requisite resources to fund salaries and other costs.

• As a consequence the ad industry would have the means to recruit new talent from a more diverse range of backgrounds, addressing an imbalance in representation across the industry.

• Recent IPA research has illustrated the degree to which young people have become detached from the industry, with most lacking basic awareness and knowledge of ad agencies despite professing a desire to establish a career in the sector.

• The report highlighted a divergence of expectations of future working practices between men and women as well as white and Black, Asian and Minority Ethnic students (BAME).

• Women are much more likely to favour an adland career than male counterparts, by a ratio of 32% to 24%. BAME respondents were the most enthusiastic about an advertising role, with 34% keen on the idea versus just 27% of their white peers.

• The Lords committee has already expressed itself to be ‘encouraged‘ by a prior commitment from Johnson to reform the levy, but remains wary until more details are forthcoming.