26 January 2017

CITB Announces Plans for Future Levy and Consensus Process

CITB has announced plans to reduce its levy to 0.35% on PAYE employees from 2018 alongside changes to the consensus process.

The levy has been reduced from 0.5% to 0.35% on PAYE employees in 2018, with payments on the NET CIS workforce remaining at 1.25%.

Build UK has been involved in the Levy Working Party which considered four different options.  The 0.35% levy was considered the best option for industry as it:

• Ensures all employers are treated equally
• Increases the difference between PAYE and NET CIS and provides a stronger incentive to employ people directly
• Is simple to administrate.

Build UK believes that this is a positive result for the industry and demonstrates that CITB is taking steps to reform as the reduction in CITB income will be off-set by efficiency savings and a focus on funding training and qualifications which relate to construction.

Over the last year, Build UK has called on CITB to present its priorities to industry. As part of its levy proposal, CITB responded positively by outlining a clear plan of their priorities to consensus federations which included a focus on careers, standards and qualification and training and development, an outcome which emphasises Build UK’s leadership and influence as the industry aims to achieve positive reform.

CITB will be undergoing its consensus process in 2017 where it must demonstrate that it has the support of industry.

As a consensus federation, Build UK will be undertaking rigorous consultation with its members to understand their views on the future of CITB and will be providing further information for members to discuss with their Board and/or members in the coming months.

As the consensus progresses, we would ask that CITB’s request for sensitive information to be treated confidentially is respected.