CHANCELLOR George Osborne visited BAE Systems in Lancashire yesterday as the firm announced plans to create 2,000 apprenticeships.

The decision comes after an announcement in the Budget of a major shake-up of how Britain’s biggest companies can deliver apprenticeships, with the introduction of a new levy.

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Money raised by the new levy will be put in the hands of the employers via a voucher mechanism.

There will be consultation with business on the implementation of the levy, with further details set out later this year.

Aerospace firm BAE Systems runs one of the country’s largest apprenticeship programmes. The firm also stands to benefit from a government pledge to maintain defence spending at two per cent of gross domestic product, in line with the Nato commitment.

As part of the visit, Mr Osborne met the company’s management team before touring BAE Systems’ Warton plant.

The Chancellor said: “I was delighted to visit BAE Systems, a company at the heart of the Northern Powerhouse, to hear about their plans to create 2,000 new apprentices.

“We need a new system that encourages more employers to deliver high-quality apprentices — and this levy will help us make huge progress.”

The visit formed the first of the Chancellor’s regional tours aimed at highlighting the policies announced in the Budget.

BAE Systems spends around £80 million per year on training employees and apprenticeships. The company also trains apprentices on behalf of small and medium-sized firms.

Nigel Whitehead, BAE Systems’ group managing director of programmes and support, said: “Our employment of 2,000 apprentices by 2018 illustrates our commitment to ensure our workforce in the UK remains among the best trained and qualified in the world in our sector.”

Ian King, chief executive of BAE Systems, said: “The commitment of additional resources for defence and security is encouraging.”