The Construction Industry Training Board (CITB) has taken its now sector backed Levy Proposals to support skills and training across England, Scotland and Wales, to the Secretary of State for Education to make a final decision on the issue.
The construction employer approval comes from two thirds (66%) of the total number of Levy-paying employers agreeing to the proposals, with 63% agreeing when measured by the total amount of Levy paid.
The result was based on submissions from the 14 Prescribed Organisations (PO), which 11 of voiced support for the Levy Proposal, as well as an independent survey of 4,000 employers who were not members of POs.
If approved, the three-year Levy Order 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.
Gillian Keegan, apprenticeships and skills minister, said: “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.”
Peter Lauener, chair of CITB, added: “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 chief executive of the CITB, 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, the new chief executive of the CITB, added: “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.”
Commenting on the proposed Levy plans, Brian Berry, chief executive of the Federation of Master Builders (FMB), said: “The FMB is passionate about supporting its members to attract new people into the industry, from all backgrounds, and train existing workers in the skills they will need for the future.
“It recognises the role of CITB as a co-ordinating body to help the industry deliver on its skills needs, and while I welcome the consensus outcome, my members expect better results from their training body.”
Brian concluded: “It is concerning that the perception of CITB’s performance and value of the Levy is poorest amongst the smallest firms. I welcome CITB’s commitment to work with the FMB to address our fundamental worries about the way CITB communicates; making access to CITB support easier and more transparent for micro firms; bringing greater benefits to small employers; and ensuring fairness of process, so that everyone who should pay the Levy does so.”
