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, three-year Levy Order which, if approved, would be issued for 2022-2025.

This will see the Levy continue at the following rates at 0.35% for PAYE and 1.25% for Net paid (Taxable) CIS Sub-contractors.

CITB has said it will now get on with delivering this year’s Business Plan and working with the 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.

Apprenticeships and Skills Minister Gillian Keegan said: “My thanks go out to both the staff at the CITB for facilitating a complex process and to the employers, other members and reps for your active participation.

“These last 18 months have been unusually challenging for the construction sector and that is why the CITB decided to delay the consensus process from 2020 to 2021. I recognise that Covid-19, one of the key factors for the postponement, has not gone away. Therefore the sector’s willingness to engage with the CITB is even more valuable.  

“The next step in the process to progress the Levy Proposals towards a Levy Order now rests with me, before doing so I will be considering the Proposals in detail.

“I know that the CITB will relish returning its entire focus to delivering skills provision for the construction sector at a time when it is more crucial than ever. I also want to welcome Tim Balcon in his new role as CITB CEO from 1 October and thank Sarah Beale for the great work she has done for many years in leading the CITB.”

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.”