Rishi Sunak has promised to create up to 20,000 more apprenticeships through a series of reforms, including fully funding training for young people and cutting red tape for small businesses.
Starting April 1, the government will cover the entire cost of training for small and medium-sized enterprises under the age of 21.
To enable this, the company has committed to £60m of new investment over the next year.
Labor said conditions were “increasingly difficult” for small businesses after 14 years of “economic failure” by the Conservatives.
The Chancellor will set out a reform package he claims will “spark a tsunami of opportunity” in a speech to a small business conference in Warwickshire.
As well as funding the cost of apprenticeships, ministers will also increase the amount of funding that companies paying apprenticeship fees can pass on to other companies.
The levy, introduced in 2017, is paid by large companies with the aim of creating more apprenticeships.
But it is said millions of pounds are left unspent each year, and business groups are calling for reform to the levy.
From April 6, companies will be able to share up to 50% of unspent funds, with 25% currently available for transfer to another employer.
The Government expects up to 20,000 more apprenticeships to become possible between the levy changes and investment in training.
Mr Sunak said the government was “sticking to our plans and doing everything we can to make the UK a great place to do business”.
“Taken together, these measures will open up a wave of opportunity and bring real change to businesses and entrepreneurs across the country,” he said.
In further reforms, Mr Sunak is also expected to announce a 50% increase in the threshold for determining company size, which would allow an additional 132,000 companies to be recognized as small and medium-sized enterprises (SMEs), avoiding non-financial reporting requirements. Are expected.
A medium-sized business is currently defined as one with 250 or fewer employees, an annual turnover of less than £36m, or a total balance sheet of less than £18m. Small businesses, on the other hand, are defined as businesses with 250 or fewer employees. It has 50 or fewer employees, an annual turnover of less than £10.2m, or a total balance sheet of less than £5.1m.
The Government believes the changes, which are due to come into force in the autumn, along with other measures to streamline reporting obligations, will save small businesses £150m a year.
Business Secretary Kemi Badenoch said almost every job in the UK was owed to “current or former small and medium-sized businesses”, describing them as “engines of economic growth”.
He said the government would “do its utmost to revitalize” small and medium-sized enterprises.
Mr Sunak and other ministers will meet business leaders at a conference bringing together around 150 of Britain's small businesses and business groups.
The Prime Minister will also announce an industry-led taskforce to boost private investment in women-led businesses.
Jonathan Reynolds, Labour's shadow business secretary, said: 'After 14 years of Tory economic failure, small business leaders say it is becoming increasingly difficult to run a successful business.
“This ongoing Tory turmoil comes at a cost, as under the Conservatives the number of businesses having to close permanently is at a record high.”
He added that Labor would bring about change for business owners by “fixing business rates, tackling payment delays, boosting exports and giving small businesses a fair chance on public contracts”.