Scotland’s home builders are facing the prospect of paying a double levy to support apprenticeship training following a move which could further hamper attempts to increase the supply of much needed new housing given ongoing skills shortages affecting the sector.

The issue has arisen as the Scottish Government sets out its response to the UK Government Apprenticeship Levy and how it plans “to develop a distinctly Scottish approach to apprenticeships and wider skills development”.

The Apprenticeship Levy will operate UK-wide, with all employers paying 0.5% of their annual pay bill in excess of £3m through the PAYE system.  In 2017-18 the Scottish Government will receive £221m in Levy funding, with this expected to increase to £239m by 2019-20.