Issue - meetings

Matter for Decision

The report proposed a new revised Cambridge City Council ‘Apprenticeship Strategy 2020’ to replace the existing Apprenticeship Strategy approved at the Strategy and Resources Scrutiny Committee in March 2017.

 

Decision of Executive Councillor for Finance and Resources

i.      Approved the proposed measures for a revised Cambridge City Council Apprenticeship Strategy 2020.

ii.    Agreed to consider a new provision for the transference of up to 10% p.a. to local SMEs, charitable and not for profit organisations as a pilot during 2020/21. This could be achieved by either working directly with external organisations or through the exiting schemes such as the Cambridge & Peterborough’s Apprenticeship Levy Pooling Service which supports local business to take on apprentices.

 

Reason for the Decision

As set out in the Officer’s report.

 

Any Alternative Options Considered and Rejected

Not applicable.

 

Scrutiny Considerations

The Committee received a report from the Organisational Development Manager.

 

The Committee made the following comments in response to the report:

      i.         Asked how easy it was to find apprentices for these schemes particularly at entry level.

    ii.         Welcomed the move away from using the levy on management apprenticeships.

   iii.         Apprenticeships were going to be difficult for people to find, particularly school leavers in the future, especially in the current conditions.

  iv.         Believed over the next two years the council’s focus on the use of apprenticeships should be coupled with recruitment rather than internal development. The priority for the community at large was for people to enter the labour market. If there was any levy left the remainder could be put into the levy pool and provide support for SME business, charitable and non-profit organisations who had a recruitment plan for sustainable employment.

    v.         Queried when the absolute deadline was to a make a final decision regarding the apprenticeship strategy?

 

The Organisational Development Manager said the following in response to Members’ questions:

      i.         Would expect several applicants for each apprenticeship, particularly given the current climate of the job market that COVID-19 had caused.

    ii.         The council’s focus was in three parts, the levy transfer, supporting existing staff and new recruits. No level had been put on support for new recruits and existing staff.

   iii.         The Government allowed 25% of the total levy to be transferred annually, approximately £30,000 could be transferable.  The proposal is to transfer 10% approx. £12,000 p.a.

  iv.         The Council pays £120,000 to £100,000 into the apprenticeship levy annually which lasts two years. This is a rolling programme with each month’s payment expiring after 24 months.

    v.         It would be best to make the decision as soon as possible so that the funds could be transferred.

 

The Executive Councillor for Finance and Resources responded with the following comments:

    i.           That the apprenticeship levy was for training and not for apprenticeship themselves. Recognising this, the committee should think about the impact on the voluntary sector, SME’s and non-profit organisations who could make use of the levy.

  ii.           Consideration had been given to put 25% immediately into this sector but felt emphasis should be for the city council to develop its own apprentices first. This would allow those organisations the opportunity to develop apprenticeship if appropriate or express an interest. Salary costs would also have to be picked up by the businesses as the levy did not cover this cost.

 iii.           Believed there had an issue in the past in finding the appropriate training scheme for SME’s.

iv.           The work that the levy had been proposed would see an increase in manual trades that traditionally had not been offered and was what the apprenticeship scheme was for. The scheme would be reviewed on a regular basis it could be possible that the transference of the Council’s apprenticeship levy to local businesses, charitable and not for profit organisations could be increased in future.

 

Councillor Bick proposed and Councillor Dalzell seconded an additional recommendation:

 

NOTE the report and proposals

 

RECOMMEND a rethink of the proposed strategy applicable to apprentice starts over the next two years in the light of the post pandemic depression, with a view to emphasising the use of apprenticeships to improve recruitment offers, potentially sharing an increased surplus from the council with local SMEs, charitable and Not For Profit organisations who provide sustainable, recruitment-based business plans

 

AGREE a modified version of the strategy through the procedure for an urgent decision

 

The additional recommendation was lost by 2 votes to 4.

 

The Committee resolved by 4 votes to 0 to endorse the recommendations.

 

The Executive Councillor approved the recommendations.

 

Conflicts of Interest Declared by the Executive Councillor (and any Dispensations Granted)

No conflicts of interest were declared by the Executive Councillor.