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09/10/2017

Construction Industry Supports Future CITB Levy

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The UK's construction sector has voted in favour of the Construction Industry Training Board continuing its Levy-raising powers.

Following the organisation's largest-ever consultation with the 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%.

A total of 14 federations and 4,000 non-represented employers were asked whether or not they support the proposed levy rate.

Final results reveal that 76.9% of employers across Great Britain support the Levy, representing 69.7% of the total value of Levy paid in.

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

Overall, it appears the majority of firms 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.

However, despite the victory, CITB's Chief Executive Officer Sarah Beale said the organisation have heard calls for change "loud and clear".
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A number of respondents voted in support of CITB on the basis the organisation carried out a number of radical reforms.

Speaking last month, CECA Chief Executive Alasdair Reisner said despite members voting in favour to retain the Levy, civil engineers "have asked us to make it clear that this should be seen as a 'yes, but…' rather than a straight endorsement".

"In recent months CITB has taken steps to cut bureaucracy from the organisation, improve communications and build better governance," he said.

"Members want this process to continue at an increased pace, ensuring that CITB is fit for purpose in the years to come."

Mark Farmer, Chief Executive of 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."

Sarah Beale, CITB CEO, 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 of the survey 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.

(LM)

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