<p>The Apprenticeship Levy</p>

Part of 1. 1. Questions to the Cabinet Secretary for Finance and Local Government – in the Senedd at 2:16 pm on 23 November 2016.

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Photo of Mark Drakeford Mark Drakeford Labour 2:16, 23 November 2016

Let me provide the figures for Members to see. It takes me back to almost the very first question I was asked by Andrew R.T. Davies when I said that the small print in all of this is important. So, in the spending review settlement, the Treasury announced that there was to be £114 million added to the Welsh block grant as a result of the apprenticeship levy. Had you read further down the page into the small print, you would have discovered that, at the same time, £90 million was being taken out of the block grant because of a reduction in English apprenticeship programmes. If you had read further down the page again, you would have discovered that Welsh public sector bodies were being required to pay in £30 million to the apprenticeship levy scheme. So, we were being given £114 million and £120 million was being taken away. That’s why, on days like today, it’s important to wait to see the whole story before making any spending commitments.

As a result of combined pressure from all devolved administrations, the Treasury announced within the last week or so a change to the basis of calculation of the apprenticeship levy, which will provide and extra £13.7 million for Wales next year. I will be in discussions with Cabinet colleagues as to how that money can be invested. But any idea that there are millions and millions of pounds coming to Wales through the apprenticeship levy is simply a fiction.