Levy Rate Cuts Proposed by CITB for 2018-20

CITB Propose Levy Reduction | Construction Industry NewsThe Construction Industry Training Board (CITB) has announced plans to cut the current PAYE levy rate from 0.5% to 0.35% following its largest consultation with the industry to date. The CITB met with over 2,000 construction industry professionals and employers during 80 membership events and 38 employer-exclusive events to gain feedback on its proposal.

The proposal will move to the formal process this month, when consensus federations will approach members for approval, after demonstrating a ‘transparent and robust approach’.

CITB Chief Executive, Sarah Beale 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.

CITB to conduct independent survey

During the formal consensus process, an independent survey will be conducted with 6,000 non-members of the Consensus Federations, employers invited to take part. This survey will be one of the largest undertaken, and will include participants from England, Scotland and Wales.

Ms Beale said, ‘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.

The construction industry, and the CITB particularly, has overriding concerns about the lack of skills in the sector, and the effect this will have on the future of the industry. Within the UK the sector is growing busier, especially with private house building projects. Commercially, large projects are in the pipeline, but the shortage of skilled workers is a huge concern. The uncertainty surrounding immigration after the Brexit vote, and subsequent trigger of Article 50, has left the industry worried that the gaps currently filled by migrant workers will cause widespread challenges in the short term.

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