NI Business Leaders have expressed concerns over the upcoming Apprenticeship Levy.

The Levy is set to come into effect in April 2017 and will impact all firms across the UK with a payroll of over £3 million, adding 0.5% to payroll costs.

Public sector employers will also come under the new charge, including health trusts, universities and district councils.

At a CBI seminar hosted by Deloitte, business leaders stated that while firms are committed to raising skill levels and apprentice numbers, there is a growing concern about the system's design and viability.

In addition, business leaders urged for close collaboration both in Stormont and Westminster to address any issues with the system.

Jackie Henry, Deloitte Senior Partner, said: "Northern Ireland businesses are rightly concerned about the extra burden the Apprenticeship Levy represents.

"It is vitally important that the NI Executive amends existing skills policy to ensure that employers affected by the levy, as in England, have the opportunity to access levy money to address their own skills needs via tailored business-led apprenticeship or upskilling programmes.

"Without this guarantee, employers who operate across the UK could prioritise English parts of their business at the expense of their NI operations."

CBI NI Director, Nigel Smyth, added: "One the biggest issues facing the Northern Ireland economy is the availability of the right skills – particularly STEM skills – with certain sectors already struggling to recruit.

"To remain competitive in a global marketplace, the NI Executive must ring-fence Northern Ireland's proportion of levy monies and ensure businesses can access it to invest in workforce skills.

"Addressing skills shortages is the best way to improve our sluggish economic productivity rates."

(Pictured: Eugene Rooney, Deputy Secretary (Operational Policy Group), Department of the Economy, Jackie Henry, Senior Partner, Deloitte, Nigel Smyth, Regional Director, CBI)

(LM)