CITB begins construction industry consultation on new levy

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The CITB has revealed it has started to consult with the sector on a new levy that could offer firms a reduction across the board

The Construction Industry Training Board (CITB) is to consult on a proposal for a new levy offer. The levy would see a reduction across the board for all firms, as well as a reform of the grants scheme.

Under the plans, the CITB suggests changing the PAYE Levy on the direct workforce. This would see it cut it from 0.5 per cent to 0.35. The 1.25 per cent net (CIS) levy charge on the subcontract workforce would remain the same.

The levy offer, which has been developed with input from the industry and has gained agreement from the Levy Working Party, could come into effect from April 2018.

Advantages of the levy

Among the advantages of the proposed levy is all employers will be treated equally and benefit from a reduced CITB levy; it is simple to implement and legislate; it is based on an approach employers are already familiar with; and it will aid with discussion over how the CITB can offer better support, as well as deliver value for money for the levy.

CEO Sarah Beale said: “We have been listening to our industry and are confident that this Levy offer is the best option.

“It will provide the funding required to deliver the support that industry needs, is simple to administer, and is straightforward for levy payers.

“Next month, we kick off the next stage of engaging with our industry.  We will discuss with employers our proposals for how we support them better and consult on how we fund this through the Levy.

“We want to ensure that our offer is relevant, makes a real difference and delivers value for money.

“We want as many as employers as possible to share their views and we will shortly be sharing details on how to get involved in the consultation.”

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