CITB Plans to Cut Levy Rate

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CITB Plans to Cut Levy Rate

The Construction Industry Training Board (CITB) is proposing to cut its levy rate for 2018-2020.

The proposal to cut the levy rate from its present 0.5% to 0.35% PAYE, with the subcontractor NET CIS rate staying the same at 1.25%, follows CITB’s biggest ever consultation with industry.

After receiving approval from the CITB Board and the Levy Working Party – made up of firms of all sizes and from across England, Scotland and Wales – the proposal will now go onto the formal consensus process, from early July to the end of September.

Consensus federations will seek the views of their members about this proposal, and have all demonstrated to CITB that they have a transparent and robust approach.  In addition, an independent survey will seek the views on the proposal from 6,000 employers, who are not members of Consensus Federations. This is a significant increase on the previous survey.

Following the formal consensus period, the result will be ratified by the Government.

Sarah Beale, CITB Chief Executive, said: “We are pleased that this levy rate has been approved by the CITB Board and the industry-led Levy Working Party. We firmly believe this offers value to employers and will deliver great impact for our industry in generating the construction skills it requires.

“It was critical that we extensively consulted employers across England, Scotland and Wales on this and our future plans.

“We now move onto the next stage of the process – formally seeking the views of employers through the Consensus Federations and through a large independent survey of employers who are not in their membership. I look forward to sharing the results later in the year.

“Ahead of this, we will be sharing more details of how CITB will use funds raised by the levy to support construction to meet its skill needs.”

During the consultation period, CITB held 38 employer events and 80 regional membership events – meeting more than 2,000 construction employers for feedback on the levy proposal and its future plans.

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