Labour courts bosses to declare support for new skills levy

Labour is asking company bosses to sign a letter backing the party’s plan for a new Skills and Growth Levy, days after controversy erupted over its claim of widespread private sector support ahead of the general election.

Sky News has seen a letter being circulated among executives which lambasts the existing Apprenticeship Levy, which it says “isn’t doing enough for our economy, for young people entering the job market or for adults needing to learn new skills”.

It said that apprenticeship starts had fallen by a third since the Levy was introduced, and claimed that billions of pounds had been “lost, unspent despite skills shortages”.

“We need a fresh approach to ensure everyone has opportunities, businesses have the right skills, and our economy thrives,” it added.

“We therefore support Labour‘s plans for a Skills and Growth Levy to both protect apprenticeship funds and give us the flexibility we need for workforce training.

“Labour’s plan fits the changing landscape,” it goes on to say.

Executives have been asked to sign the letter by the end of Friday, with Labour presumably planning to publish it next week.

One insider said the letter itself was not new, with the text having been circulated earlier this week but that party officials were now seeking a further group of signatories.

A public letter released on Tuesday was signed by 120 company chiefs in support of the party, although it triggered a row over Labour’s claim to be the new “party of business”.

Only one signatory – Andy Higginson, the JD Sports Fashion chairman – is in a senior role at a FTSE-100 company, while a number of others were revealed to be associated with businesses that were dormant.

Labour has been contacted for comment.