Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, (a) what action the Government is taking to address skills shortages in small and medium sized enterprises; (b) what assessment he has made of the potential implications for his Department's policies of the combined impact of skills shortages and workforce capacity constraints in SMEs; and (c) what steps he is taking to ensure the skills system supports SMEs to train and grow their workforce.

The government is committed to addressing skills shortages in small and medium sized enterprises. To support employers to take on apprentices, the government provides a range of financial support. We are introducing a new hiring grant of £2,000 for non-levy paying employers, typically SMEs, that take on 16–24-year-old apprentices as new employees. Additionally, from August 2026 we will fully fund apprenticeship training for non-levy paying employers for eligible people aged 16-24.

The new Business Growth Service is already promoting and signposting the government’s skills offer to SMEs.