Rethinking Business Taxation: Supporting SMEs and Apprenticeships for Economic Growth

Taxing Businesses More is Not the Answer

Let’s face it: taxing businesses more is a recipe for stagnation, not growth. If you’ve been following the political landscape lately, you may have noticed that some politicians are still caught in a loop of increasing taxes without considering how that impacts our beloved small and medium enterprises—or SMEs, as the suits like to call them. You can bet I’m no fan of taxing businesses out of existence. It’s time to rethink how we nurture our economy, especially when it comes to encouraging SMEs and boosting apprenticeship opportunities.

Why Tax Increases Might Backfire

Let’s start with the basics. Many politicians seem to think that piling on taxes will somehow create a more prosperous society. The truth is, that just doesn’t work. Increasing tax burdens on businesses often forces them to reduce their workforce or, worse, rethink their entire strategy. When the focus is solely on filling government coffers, we lose sight of what truly matters—fostering innovation and helping young people secure meaningful work through apprenticeships.

If we really want more SMEs to flourish and young people to dive into apprenticeship programmes, we need to shake things up. It’s not just about throwing more money at problems; it’s about reforming and rethinking our approach entirely.

Three Steps to Revitalise SMEs

So, where do we start? Here are my three suggestions that I believe could help unlock potential:

1. Adjust Levy Returns: Let’s cut the amount that levy payers receive back to 50% of their contributions. This will encourage businesses to pinpoint their actual needs instead of simply relying on funding.
2. Abolish the 5% Contribution: This barrier has long hindered participation in apprenticeships for SMEs. By removing this constraint, we can create more opportunities for these businesses to engage with young talent.
3. Boost Funding for Young Apprentices: Increasing the funding band for providers by 50% for those aged 16 to 18 is crucial. Combined with the abolition of the 5% contribution, this will encourage training providers to actively recruit and promote apprenticeships once again.

Confidence and certainty are pivotal in revitalising the apprenticeship market. Politicians often offer slow, uninspired policy changes—and that does little to inject hope or clarity into the landscape. The time for decisive action is now.

What Do You Think?

Let’s connect this back to the core of the matter: we need to support our SMEs in a way that allows them to thrive, not just survive. If you’re like me, you want to see vibrant local economies filled with innovative entrepreneurs and skilled, passionate young people stepping into their futures through apprenticeships.

So, my question for you is: what steps do you think we need to take to energise the apprenticeship landscape? It’s all about creating a culture of confidence and opportunity, and your voice matters. Let’s get the conversation started.

Final Thoughts

I’ve seen firsthand the difference a good apprenticeship can make, both for businesses and young people alike. It’s not just about filling positions; it’s about creating a community of skilled workers who are passionate about what they do. As someone who’s part of that ecosystem, I believe we can do far better than simply taxing businesses into submission. Let’s reimagine our approach together.

Now, let’s share thoughts over a cuppa. What are your views? How can we better support our local economies and the young minds ready to take on the world? I’d love to hear from you.

#CitySkills #Apprenticeships #BusinessGrowth