The Chancellor announced further support for Individual Learning Accounts (ILAs) which will create a pot of money for employees to fund vocational training. Employers will now be able to make contributions into the ILA for each employee and this contribution will be tax deductable against the company's tax liability.

ILAs provide a 20% discount on the cost of vocational training up to £500, and are within the control of the employee. Further information about ILA's is available at http://www.lifelonglearning.co.uk/ila/index.htm

In the Budget, it was announced that the present scheme of Vocational Training Relief would be withdrawn in 2000-2001 when the national framework of ILAs was fully launched. Pilot schemes are already in operation.