The Construction Industry Training Board (CITB) has announced the timeline for redesigning its industry levy.
Before the formal Levy consultation, CITB says it will consult with employers in the construction sector to discuss how it could work alongside the Government’s Apprenticeship Levy, with the Consensus process to take place as planned next year.
The industry asked for this timetable to allow all employers in the construction industry the chance to submit their views on how the CITB Levy could be reshaped for a potential new Levy Order in 2018, as well as considering the CITB support that this could fund.
Ahead of formal Levy Consultation, CITB will discuss with employers how the organisation can best meet their needs, including by making the current grants scheme more relevant and accessible, particularly for small firms.
CITB will also re-establish the Levy Working Party, which will be formed of representatives from across the construction industry.
They will work up different options for a potential new CITB levy. The Working Party includes CITB Board Member Diana Garnham, Hannah Warburton from Laing O’Rourke and Ian Rogers from the Scottish Decorators’ Federation.
This timeline requires a temporary transition arrangement, for 2017 only, to mitigate the impact on firms in scope to both the Apprenticeship Levy and the CITB levy. This is because firms with a payroll over £3m will need to pay both levies in 2017.
However, CITB will help these companies to claim back much of their contribution to the CITB Levy through enhanced funding for training they undertake. Smaller firms who do not pay the new Apprenticeship Levy will be able to claim CITB grant funding as usual.
The funds used to off-set the cost to companies in scope to both levies will come from CITB efficiency savings and reserves.
Steve Radley, director of policy at CITB, said: “The Apprenticeship Levy means a big change for our industry and CITB needs to adapt accordingly. Industry has asked us to allow the time for a proper Consensus, so we can listen to employers and together come up with a solution that will work for the whole of construction.
“We are currently working with industry to agree the mechanics of the transition arrangements and will announce this in early July.”