McDonald’s chief executive calls for shake-up of apprenticeship levy
THE chief executive of McDonald’s has called for a shake-up of the apprenticeship levy.
The Big Mac chain employs nearly 180,000 in the UK and Ireland, including 45,000 hired in the past five years.
Boss Alistair Macrow has outlined the £95billion boost the fast food giant has given the UK economy since it arrived in 1974.
And new analysis seen by The Sun shows it has also spent £51.5billion with British suppliers.
McDonald’s and its 200 franchise partners spent £62.5million in the past year alone on training opportunities for workers.
But Mr Macrow says there is a chance to go even further if the Government overhauls the apprenticeship levy.
The levy — introduced to boost youth employment — has strict requirements, meaning many schemes do not qualify.
As a result, £2.2billion in unspent funds has been returned to the Treasury, as bosses cannot use it.
Mr Macrow told The Sun: “We are hugely supportive of policies that encourage investment in young people’s future — but it has to be a policy that works in practice.
“At McDonald’s we have seen how powerful apprenticeship schemes can be in developing young people — it’s essential every business is encouraged to do more. But for that to happen, the apprenticeship levy needs to be more flexible.”
Help for families
FEWER families are eating out during the cost-of-living crisis, prompting McDonald’s to launch a new deal for hard-pressed customers.
In response to figures showing there were 43million fewer family visits to casual dining chains in the first four months of 2024, the fast food chain has introduced a “3 for £3” promotion.
Boss Alistair Macrow said: “People are being squeezed.
“Households used to treat themselves to a film and a meal on the way home.
“They can’t afford to do both now. It is our job to make what we know they love affordable.”
He said it would be better for money to be spent on a wider range of courses and ensure more costs from employing apprentices were covered.
The boss of AO World recently called on the Government to give companies more power to decide how best to train staff with the levy.
Tesco, Timpsons, and the Co-op have also been vocal critics.
Mr Macrow said that McDonald’s was trying to divert more of its unspent levy to fund 500 new youth work qualifications.
But he claims it is difficult as the levy prevents smaller youth work organisations from accessing funds.
Earlier this year Business Secretary Kemi Badenoch outlined plans to let smaller businesses access more of the cash.
Real key to success
By Alastair Macrow, McDonald's UK CEO
WE have been in the UK for 50 years, and from Day One it’s been true that harnessing the potential of young people has been key to our success.
And I believe, as we look to the future, the same applies to the whole country.
That’s why I find it so frustrating to see a distinct lack of provisions for our young people, and lack of investment in their future.
Business can, and should, play a role in changing the situation.
Some of our most senior people started their careers at drive-thru windows.
We know young people are finding it tough right now, and as a brand in so many communities, with trusted, safe places on the high street, we know we can be part of the solution.
Our “Makin’ It” programme provides 16 to 24-year-olds with genuine opportunities.
It has already helped more than 42,500 young people change their lives across the UK.
But our ambitions are huge.
We have committed to connecting all our restaurants to youth services, and the funding of 500 new youth work qualifications.
This means we can help unlock the potential of young people in every community across the UK.
I am hugely privileged to be running a business like McDonald’s — there are plenty of proud moments — but as a dad, being able to genuinely make a difference to young people’s lives is right up there.
Fast Fode fun
MCDONALD’S Fun Football programme gave 1.7million hours of free coaching to 284,000 children last year.
Three-quarters of the sessions, which have included celebrity appearances by Manchester City’s Phil Foden and Arsenal’s Beth Mead, take place in some of the country’s most hard-up communities.
By 2026, the chain hopes to have provided ten million hours of coaching to one million kids aged five to 11.
58% jump in water boss pay
THE boss of the owner of South West Water has still bagged a 58 per cent pay bump, despite saying she would forgo her bonus.
The pay boost for chief exec Susan Davy comes as households in Devon are still being advised to boil tap water after a parasite outbreak last month.
Pennon, which owns South West Water, revealed Ms Davy’s pay package rose to £860,000, up from £543,000 a year ago, as she received £298,000 in share awards on top of a 3.5 per cent raise.
Pennon said that she still would have been entitled to a £237,000 bonus but instead she would be donating it to struggling customers.
The company said Ms Davy said it was “the right thing to do”.
Pennon increased its full-year dividend payout to investors by 3.8 per cent last month to £125.8million even though it faced a record £2.1million fine from the water regulator for sewage spills.
Ashtead eyes U.S.
MACHINERY and plant hire giant Ashtead is the latest FTSE 100 business to consider switching to a New York listing.
The company, worth about £24billion, is exploring shifting to the US where it generates 90 per cent of its revenues, it has been reported.
Its loss would deal another blow to the London Stock Exchange, which is struggling to hold on to listings, with betting company Flutter and plumbing business Ferguson already switching to the US.