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Parliamentary Debates and Questions

S5W-05135: Daniel Johnson (Edinburgh Southern)

Scottish Labour

Date lodged: 28 November 2016

To ask the Scottish Government what impact the introduction of the apprenticeship levy will have on the (a) total money available in the block grant for apprenticeships, (b) cost of paying the levy by the public sector and (c) the net impact on its resource DEL, in each of the next three years.

Answered by: Jamie Hepburn 13 December 2016

a) Funding allocated to the Scottish Government as a result of the introduction of the UK Government Apprenticeship Levy will form part of the Scottish block grant. Barnett consequentials accrued to the Scottish Government are added to or, if comparable UK budgets have been reduced rather than increased, are deducted from the total available funding available to Scottish Ministers. It is then for Scottish Ministers to decide how all the resources available to them should be allocated.

b) The cost to the Scottish public sector contribution to the UK Government Apprenticeship Levy is estimated at £73 million per annum.

c) Given the direct financial impact on public sector employers, between 2017-18 and 2019-20, we estimate that the Scottish Government’s net spending power will be £63 million lower than it would have been in the absence of the Levy.

Overall, the Scottish Government’s Spending Review discretionary resource DEL allocation, as amended in the March UK Budget and UK Autumn Statement, faces the equivalent of a real terms cut of 3.1% over the period relative to the 2016-17 budget.