What estimate he has made of the costs incurred by businesses trading between Great Britain and Northern Ireland as a result of the Northern Ireland Protocol.
The protocol is explicit in its respect for the UK’s territorial integrity, and the Government are committed to delivering it with as little impact on businesses and day-to-day lives as possible. The Government have set up the free-to-use trader support service to support businesses trading between Great Britain and Northern Ireland at a cost of £270 million and have made full use of provisions within the protocol to ensure that no tariffs are charged on internal UK trade.
I refer to my entry in the Register of Members’ Financial Interests.
Does the Minister accept that the protocol actually discriminates against British businesses trading between GB and Northern Ireland and between Northern Ireland and GB? It undermines trade, damages consumer opportunities and rights, and increases costs to both consumers and businesses on both sides of the channel. What action will the Government take, and indeed encourage others to take, to save British businesses and the economy from this economic discrimination? How long will businesses have to wait for a solution and what compensation has the Treasury calculated to cover the loss in trade, which, at present, is running at hundreds of millions of pounds?
I thank the hon. Member for his question. Of course, this follows a wide concern that he has put in front of the House on many previous occasions. I do not accept the characterisation that he has given of the situation in Northern Ireland, but I absolutely agree with him that the Government need to continue to press for the Northern Ireland protocol to be implemented in a proportionate and pragmatic way. That is an important goal of the Government. He talks about the schemes in place. Let me remind him that, so far, the trader support service has processed something like, I think, 700,000 consignments, 59,000 traders have been registered, there is the Brexit support fund and there is the new movement assistance scheme, as he will know, for food and agriculture trade. We retain a focus on making those systems, rules and support work as effectively and as widely as possible.[Official Report, 28 June 2021, Vol. 698, c. 2MC.]
We are encouraging employers of all sizes to take on new apprentices through our hiring incentive. Employers who hire a new apprentice of any age until the end of September will receive £3,000 per apprentice. We are also continuing to improve the apprenticeship system for employers by introducing more flexible trading options, making the transfer of unspent levy funds to small businesses easier, and supporting apprenticeships in industries with flexible working patterns through the launch of portable apprenticeships.
The Government’s £3,000 initiative incentive for businesses to employ apprentices is welcome, with several companies in my constituency looking to apply, including Shackletons in Dewsbury, and John Cotton and Alexander’s Bar in Mirfield. There is no doubt that this initiative has been a great success in enabling young people to get on to the employment ladder. Therefore, will my right hon. Friend consider an extension in funding for the scheme beyond the 30 September deadline?
I pay tribute to, I think it was Shackletons and John Cotton in my hon. Friend’s constituency for the example that they are setting, which I hope is emulated by employers across our country. The scheme, as he says, has been a success. More than 50,000 incentive payments were claimed by employers, 80% of which were for young apprentices between 18 and 24. We will of course keep this very successful scheme under review.
Apprenticeships are a fantastic way for people to learn, earn and realise their potential, so much so that I have just advertised this week for one to join my team via Hopwood Hall College in my Heywood and Middleton constituency. Does my right hon. Friend agree that businesses big and small can play their part in turbocharging our post-covid recovery by offering these fantastic opportunities?
I am delighted to hear that my hon. Friend is working with Hopwood Hall College in his constituency to hire an apprentice. Hopefully, I will get an opportunity to meet them in the future. He is right about the ability of this scheme to support all types of employers. Small businesses in particular should know that the £3,000 equates to about a 35% wage subsidy for young apprentices and the Government pay 95% of all training costs, so there has never been a better time for employers to do as he says to help turbocharge our recovery and to hire an apprentice.
As with every economic crisis, it is Telford’s young people who have been hit hardest by the pandemic. Telford College is playing a vital role in working with employers across the region and securing 1,000 quality apprenticeships this year, helping young people to build their future. Will the Chancellor congratulate Telford College on its inspirational work, and will he commit to putting skills and opportunities for young people front and centre in his economic recovery plan?
I am delighted to hear that news from my hon. Friend. I am happy to congratulate Telford College on a fantastic performance in creating new apprenticeships and working with its local employers to provide those opportunities. She is absolutely right: young people have borne the brunt economically of this crisis. They comprise the majority of the job losses, so it is right that they are front and centre of our minds as we think about the recovery. That is why, whether it is the kickstart scheme, tripling the number of traineeships or the new lifetime skills guarantee, we are focused on providing them with the opportunities and support that they need.
It is clear that the pandemic has hit the youngest the hardest. Alongside apprenticeships, many businesses in my Eddisbury constituency, including Safety Shield in Winsford, have used the kickstart scheme in order to bring more good jobs to young people as part of our economic recovery. To that end, will my right hon. Friend tell the House what impact the roll-out of the kickstart scheme is having, and how more businesses that want to, and could, join that scheme and invest in young talents in their area are able to do so?
I congratulate Safety Shield in Winsford on embarking on taking on new kickstarters. This is central to our plan for the recovery in providing opportunity to young people in my hon. Friend’s constituency and others. I am pleased to say that over 31,000 kickstarters have started their jobs, with 10,000 more to come in the coming weeks and months. I would say to employers who are looking to take on a kickstarter: go online, talk to your local business organisations, whether it is the Federation of Small Businesses or the chamber of commerce, or apply directly to the Department for Work and Pensions to be accredited so that you can give a young person a fantastic opportunity as we go through the stages of our recovery.
Unemployment is now falling fast in west Berkshire, and that is in no small part thanks to the Treasury-backed apprenticeship scheme. However, Newbury College, our principal training provider, says that it is still the large employers that take the bulk of young apprentices, when it is small and medium-sized enterprises that form the backbone of our local economy. Does my right hon. Friend think there is an opportunity to reallocate some of the surplus from the apprenticeship levy to encourage take-up among SMEs?