Eyes Openers
  • World News
  • Business
  • Stocks
  • Politics
  • World News
  • Business
  • Stocks
  • Politics

Eyes Openers

Business

UK business leaders call on Labour to introduce skills tax relief for training Neets

by August 4, 2025
August 4, 2025
UK business leaders call on Labour to introduce skills tax relief for training Neets

More than 125 top business leaders from across the UK have written to Chancellor Rachel Reeves urging the government to introduce a tax relief scheme to support companies that invest in training young people not in employment, education or training (Neets).

Senior executives from companies including Toyota, JCB, and leading manufacturers signed the open letter, warning that without urgent action, Britain faces the risk of “confining a generation to the scrapheap”.

The number of 16–24-year-olds in the UK classed as Neets hit 923,000 at the end of March 2024, according to official figures. Business leaders say targeted support is needed to tackle the country’s youth worklessness crisis and to make training more viable for employers already facing rising costs.

“A direct and accessible skills tax relief would act as a fiscal incentive, enabling businesses to invest in training young people,” the letter states.

They propose the relief could help cover costs of accredited training programmes, including apprenticeships, vocational courses, and skills bootcamps—all of which are seen as vital in reducing youth inactivity and bridging the UK’s growing skills gap.

Georgiana Bristol, chief executive of the Jobs Foundation, said the current cost burden on firms was preventing them from offering training to young people, despite widespread willingness to do so.

“We are not short of young people with ambition. We are short of clear routes into real work,” she said. “A skills tax relief could give businesses the tools to offer that hope.”

Christopher Nieper, clothing manufacturer and co-author of the letter, said the cost of Neet-related inactivity—both in lost productivity and welfare spending—was now “unsustainable”.

The Centre for Social Justice has proposed a 40% tax credit for businesses hiring and training Neets, estimating it could unlock up to £23 billion in savings for the Treasury through reduced benefit costs and increased tax revenues.

The business intervention comes as both Prime Minister Keir Starmer and Chancellor Reeves acknowledge the scale of the problem.

“None of us should accept a system that operates like that,” Starmer told MPs at the Liaison Committee last month. “It is broken and needs to be mended.”

Reeves has described the scale of youth unemployment as a “crisis”, but faces opposition within her own party over broader welfare reforms, particularly around disability benefits and cuts to support for those unable to work.

While the Treasury is reportedly aiming to raise £30 billion through tax reforms to fill a fiscal hole, ministers may now have to weigh that against the economic gains of reducing youth unemployment.

The call for a skills-led tax incentive reflects a wider shift in thinking, with businesses now being seen as key delivery partners in tackling social and economic inactivity—rather than relying solely on state welfare systems.

Supporters argue that investing in vocational upskilling and early career development is not just a social good, but an economic imperative in a tight labour market.

Whether Labour’s new government will heed the call remains to be seen. But with youth unemployment nearing the one million mark, pressure is mounting for bold and immediate intervention.

Read more:
UK business leaders call on Labour to introduce skills tax relief for training Neets

previous post
Millions of UK drivers could receive £950 each in car finance compensation scheme

Related Posts

Razzamataz offers £25k franchise opportunity to two aspiring...

July 3, 2025

Vodafone franchisee scandal prompts parliamentary support and calls...

July 3, 2025

Bitcoin hits new high as Trump’s ‘crypto week’...

July 15, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Popular Posts

    • A GOP operative accused a monastery of voter fraud. Nuns fought back.

      October 24, 2024
    • 2

      South Korea court begins review of Yoon impeachment

      December 16, 2024
    • 3

      Musk’s new ultimatum spurs fresh confusion among US government workers

      February 26, 2025
    • 4

      Brazil prosecutor general decides not to charge Bolsonaro for vaccine records fraud

      March 28, 2025
    • 5

      An aide, a diplomat and a spy: Who is Putin sending to Turkey?

      May 15, 2025

    Categories

    • Business (313)
    • Politics (20)
    • Stocks (51)
    • World News (20)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: EyesOpeners.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 EyesOpeners.com | All Rights Reserved