Having carried out a consultation process in its report ‘Taxation of Self-Funded Work-Related Training’ it said that ‘there is insufficient evidence that extending tax relief is likely to be effective in incentivising self-funded work-related training. After close consideration, the Government believes other policy interventions will be more effective in delivering support and addressing the barriers to learning’ such as the National Retraining Scheme, which sets out to help those in work, including the self-employed, develop ‘the skills they need to thrive’.

The report says that the majority of responses to the consultation “were sceptical about the impact of tax relief in addressing the established barriers to learning, which include the upfront cost and a lack of time due to work and other commitments The responses to the consultation indicate extending tax relief might encourage some additional training but it would mostly subsidise investments in skills that would occur even in the absence of government support. This means any impact on the primary objective of boosting the aggregate productivity in the UK would be negligible.”