The new funding was unveiled by Chancellor Philip Hammond in his Spring Budget on Thursday, 08 March.
Brian Berry, Chief Executive of the FMB, said while the funding is a "much-needed" boost, the Government must ensure that T-Levels match up to A-Levels as the UK "has been guilty of putting too much emphasis on the academic route".
"The Chancellor clearly understands that the UK won't address the productivity challenge unless we rethink our approach to technical and vocational education," he said. "T-Levels could be the answer if they genuinely rival A-Levels in the eyes of parents, teachers and young people.
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"UK society as a whole has been guilty of putting too much emphasis on the academic route – this has made it more difficult for vital sectors like construction and house building to attract the talented new people we need. In construction, we are suffering from a severe skills shortage and this is likely to worsen once we leave the EU and no longer have easy access to European labour. This £500 million funding announced today for T-Levels is therefore a welcome and much-needed boost."
Mr Berry also added plans to increase tax on the self-employed "is not helpful".
"If we want to establish a resilient, Brexit-proof economy, we must encourage and support our current and future entrepreneurs in the construction industry and beyond," he continued.
"A jump in National Insurance Contributions from 1% to 10% next year could send the wrong message to those individuals who are considering going it alone. The self-employed are the backbone of our economy and the Government should tread carefully here."
(LM/JP)
