Supermarket chain Asda will donate £2 million to small businesses to help fund around 400 apprenticeships in local communities across the country.

Following National Apprenticeship Week last week, Asda has chosen to transfer a portion of its Apprenticeship Levy to pay for apprentices to train in small local businesses, as reported by Retail Gazette.

The move aims to give young people the chance to develop new skills, while small businesses will have the funding to develop young talent they may otherwise be unable to afford.

Asda, which has stores in Cheltenham and Gloucester, said the funding would initially benefit businesses in Leicester, London and Leeds. More areas are set to follow over the coming months.

The Big 4 supermarket will work with London Progression Collaboration, the Leeds City Region Enterprise Partnership and Leicester City Council, which will all distribute an initial £100,000 to businesses in their local areas.

Asda said it was looking to partner with similar organisations elsewhere in the country, to make sure the remaining £1.7 million can be used to support apprentices and help businesses thrive.

The company said it understands the need to support people and small businesses more than ever, due to the impact of Covid-19.

Asda currently over 1,000 apprentices among its own staff at all levels of the business, from hourly paid shop staff to senior director level.