Royal Mail launches £1m apprenticeship levy fund for small businesses

The research, which showed that 25% of businesses are challenged in recruiting skilled workers, has been published in a report today (2 July).

Titled “Small businesses: delivering growth for Britain”, the report is the result of a survey of “more than 1,200 BCC members and supporting qualitative insight into what small businesses see as the biggest opportunities and barriers to growth”.

Other key findings include:

• More than a third (35%) of UK firms expect to grow in the next year, with 41% forecasting ‘business as usual’ and 22% expecting to downsize
• Four in 10 businesses (38%) see the UK domestic market as the biggest opportunity
• Online remains a key driver of growth for businesses – firms expect ecommerce sales to increase by 25%

The report urges the government to offer targeted support to help small businesses achieve their growth ambitions. It forms part of “Royal Mail Means Business”, a new campaign celebrating the contribution of small enterprises, from budding entrepreneurs and start-ups to established businesses with up to 250 staff.

As part of the initiative, Royal Mail has relaunched its Small Business Hub, which offers tailored advice and resources to encourage growth.

This includes simplifying the exporting process and providing expert guidance on areas small businesses have identified as key to expanding in ecommerce and growing online sales.

Royal Mail’s apprenticeship levy gifting fund is now open to business owners and employees from registered companies with fewer than 250 staff.

The fund can be used for any government-approved apprenticeship course, from traditional skills training to learning how to implement emerging technologies such as AI to boost productivity.

Under current rules, companies with an annual payroll of £3m or more must pay a levy to fund apprenticeships and can choose to transfer a portion of this to external organisations, such as Royal Mail.

Alistair Cochrane, interim CEO, Royal Mail, said: “We are hugely proud of our role in helping small businesses across the UK, but we want to go further in helping them to thrive in today’s competitive market.

“The research shows small businesses have sent a clear message that they need more support, particularly in accessing workers, exporting and clearer advice. The commitments we are making, including our £1m apprenticeship levy gifting fund and new Small Business Hub, are designed to target support where it’s needed.”

Shevaun Haviland, director general, British Chambers of Commerce, said: “SMEs are the beating heart of the UK economy, driving growth and employing millions of people across the country.

“To really understand what businesses are thinking, we’re delighted to have partnered with Royal Mail on roundtable events across our Chamber network, alongside survey work carried out by our award-winning Insights Unit.

“Royal Mail’s support for small business, with a particular focus on skills, can help make a real difference in local communities across the UK.”