Industry Votes Yes to Future CITB Levy While Still Calling for Change

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Industry Votes Yes to Future CITB Levy While Still Calling for Change

The Construction Industry Training Board’s (CITB) proposed Levy rate has been backed by the sector – alongside calls for reform.   

The vote showed strong support for CITB’s continued Levy-raising powers, across employers of all sizes in England, Scotland and Wales.

This comes at the end of the CITB’s triennial Consensus process, during which 14 federations and 4,000 non-represented employers were asked whether or not they support the proposed levy rate.

Following CITB’s biggest-ever consultation with industry, the proposed Levy rate for this year was set at 0.35% for all PAYE employers, down from 0.5% in previous years. The subcontractor NET CIS rate remains at 1.25%.

Results
Final results from the independent employer survey and responses from Consensus federations reveal that 76.9% of employers across Great Britain support the Levy, representing 69.7% of the total value of Levy paid in.

Across the three nations, 10 out of the 14 federations voted in favour of the Levy while the survey of non-represented employers showed support at 72.4% based on the number of employers and 66.1% based on the value of Levy assessments.

In England, 71.2% of employers surveyed support the Levy. Responses in Scotland and Wales show increasing support with 8 out of 10 (79.1% and 79.2%) of employers voting ‘yes’, respectively. 

The survey also revealed that the majority of firms of all sizes support the Levy - 74.2% of large and medium firms, 75.9% of small firms and 71.6% of micro firms all voted in favour. 

Sarah Beale, CEO at CITB, said:  “The results are clear – construction firms across Great Britain have come together to commit to deliver a skilled construction workforce for the next three years. The Consensus process this year has been rigorous, robust and inclusive – with more employers consulted than ever before.

“Whilst we have been backed by our industry, we’ve heard the calls for change loud and clear. Be assured that we will continue listening to industry and along with recommendations from the Government’s upcoming review into industry training boards, will use all we learn to inform our reform process.

“We are completely committed to modernising our organisation by renewing governance, ensuring accountability and improving outcomes. It is what industry expects and we will deliver.”

The results will now be submitted to the Department for Education for verification and approval before the Secretary of State asks Parliament to approve the new Levy order.

Responses from industry figures

Cathie Clarke, Chief Executive of the Single Ply Roofing Association, said: “Following the consensus procedure, CITB must now ensure that they retain our support and act swiftly to realise the promised reforms. As a specialist federation, SPRA, its members and the wider single ply industry have benefitted significantly from working closely with the CITB.

“Our collaboration has led to the development of Level 2 qualifications and courses for single ply membrane waterproofing – and the current support of the roofing Basic Competency Programme has recognised the important role manufacturers also play in training our specialist workforce. As a result, SPRA is now able to offer a true career path for single ply operatives. This would not have been possible without the CITB and I hope we can develop our collaborative efforts into the future for the continued benefit of the single ply industry.”

Mark Farmer, Chief Executive, Cast Consultancy, said: “I've made it clear the future of the industry has to be very different; that means CITB must be very different too. We’ve seen some positive signs from CITB, particularly with the reports around immersive learning and offsite construction. Now we need to see the big changes that are going to make our industry’s training body fit for purpose long term.”

John Tutte, Chief Executive, Redrow Homes, said: “The CITB need to modernise, particularly to meet the needs of the housebuilding industry.  They should take this levy vote as a stimulus to update their business model so that it can better support our industry. I am encouraged that this is recognised and I welcome indicators I have seen that serious reform is on its way. I am confident the housebuilding industry will offer its full support to the CITB to deliver the changes required.”

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