CITB secures construction industry support for Levy Proposals

Construction employers have backed CITB’s Levy Proposals to support skills and training across England, Scotland and Wales, by way of the Consensus process.

The provisional result will now be taken to the Secretary of State for Education to make the final decision on the issue of a new, threeyear Levy Order which, if approved, would be issued for 20222025. This will see the Levy continue at the following rates at 0.35% for PAYE and 1.25% for Net paid (Taxable) CIS Subcontractors.

CITB will now get on with delivering this year’s Business Plan and working with industry to agree its forward plan. In doing so, it will listen to the feedback it received on how it can communicate its plans and impact more clearly and ensure its support is relevant, accessible and easily understood.
Overall, 66% or two thirds of the total number of Levy-paying employers agreed to the proposals, with 63% agreeing when measured by the total amount of Levy paid. This result was based on submissions from the 14 Prescribed Organisations (trade bodies representing employers across the industry) and an independent survey of 4,000 employers who were not members of POs. Eleven of the 14 Prescribed Organisations supported the Levy Proposals.

Peter Lauener, CITB Chair, said: “Construction has been through a tremendously difficult couple of years. CITB moved quickly to support employers by freezing Levy collection last year, cutting bills by half this year, and putting the right support in place.
“We will carry on with delivering our current plans and get started with shaping our future ones. I want to thank everyone who participated in the Consensus process this year – your input is invaluable and will help shape CITB’s support for you in future.”

Sarah Beale, outgoing CITB Chief Executive, said: “At an extremely tough time, construction employers have demonstrated that they still believe that the Levy and grant system is critical in addressing the industry’s skill needs and their support for the Levy Proposals. In developing our future plans, we will listen hard to what employers told us in how we can ensure that the Levy works for them and provides support that is relevant, easy to understand and accessible.”

Tim Balcon, new CITB Chief Executive, said: “It’s good that so much of what employers are asking for is already in the Business Plan, so we need to make support easier to access and understand and to keep the sector better informed.
“CITB is committed to maximising the value of the Levy for employers, providing practical and financial support for everyday training needs as well as tackling long-term skills needs.”

NAS members responded positively to CITB's Levy proposals with roughly two-thirds agreeing to the proposals. This has now been mirrored by the broader construction sector. While the latest Levy proposals have been given a 'yes', I think it is one that comes with a caveat - that construction businesses, particularly smaller, specialist contractors, want to see more of a return for their investment in the CITB and a simpler system that works for them. Making that a reality will be a priority for the NAS in the coming year.