The trade body warned the levy will place severe burdens on employers in the licensed hospitality trade due to economic uncertainty after Brexit and, as a result, could damage investment.
After the Chancellor announced the levy last year, the Government has now published details of how it will work.
It will see all UK employers who have wage bills higher than £3m, liable to pay an additional payroll tax to fund apprenticeships from April next year.
Chief executive of the ALMR Kate Nicholls said by introducing additional regulatory costs, businesses would be under additional strain in what is a labour-intensive sector.
Time of uncertainty
She added: “Licensed hospitality has already doubled the number of apprenticeship starts and is investing, on average, more than £1,000 per employee per year for in-work training – this could well be jeopardised by a blunt additional tax on employment.
“The timing of the levy, coming shortly after the EU referendum and while business and consumer confidence still needs a boost, could scarcely be worse. This is a time of economic uncertainty for UK businesses, not a time to be introducing significant additional costs at such short notice.”
The ALMR welcomed the corporation tax cut last month (July) but also urged the Government to delay the introduction of the apprenticeship levy.
Nicholls explained the ALMR has liaised with the Government to air its concerns, and hospitality and retail business leaders have come together to tell ministers as part of the Brexit dialogue, to postpone the levy.
She concluded: “We urge them to rethink the introduction of a measure that will place added strain on employers at such an uncertain time.”