Skills shortages is not a new issue for businesses, however the latest Government driven apprenticeship levy is something we all MUST start talking about if we’re going to influence a stronger economy for Wales and the UK as a whole.

Apprenticeships are essential to developing key skills for our employees and to ensure the future success of our businesses.

To recognise the significance of such on-the-job training, the Government’s Department for Business Innovation & Skills plans to introduce an apprenticeship levy which allows employers to choose and pay for the apprenticeship training they want.

The model, that has been successful in more than 50 countries, is due to come into force from 2017/18 and proposes to deliver three million apprenticeships, an increase of 35 per cent delivered in the previous parliament, across the UK.

The consultation document infers that a levy will only be applied to businesses which have a workforce of 250 or more, which is crucial given that the Association of Employment and Learning Providers estimates that only 50 per cent of large employers are actively engaged in apprenticeship schemes.

Hopefully, a compulsory involvement in the levy will provide them with the motivation to invest more in work-based learning schemes, giving youngsters the opportunity to enter a job with relevant training.

At present, we do not know how this will impact Wales as apprenticeships are devolved to the Welsh Government and the new levy conditions will be decided upon by central government.

There is no doubt that any proposed changes will impact businesses’ planning, investment and growth over the next 18 months, however with apprenticeships generating approximately £1.1bn to the Welsh economy every year, it is essential to remember how valuable apprenticeships are.

The levy’s consultation period closes on October 2, and I therefore strongly urge all businesses - large, medium or small - to have their say in how the levy should be applied.

It is down to us to ensure a stronger future economy for Wales, and through Apprenticeships we can improve skills, motivate employees and increase productivity.