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Tue May 11 2021

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CITB confirms levy cut plan

19 Jun 17 The Construction Industry Training Board (CITB) has confirmed its proposed reduced levy rate for 2018-2020.

The proposal is to cut the CITB levy rate from its present 0.5% to 0.35% PAYE, with the subcontractor NET CIS rate staying the same at 1.25%.

After receiving approval from the CITB board and the levy working party, the proposal will now go onto the formal consensus process, from early July to the end of September.

Consensus federations will seek the views of their members, while an independent survey will seek the views on the proposal from 6,000 employers who are not members of consensus federations.

Following the formal consensus period, the result will be ratified by government.

During consultation, CITB held 38 employer events and 80 regional membership events – meeting over 2000 construction employers for feedback on the levy proposal and its future plans.

It found mixed support with only 50% of employers rating it as good or excellent, 24% rating it as average and 27% rating it as poor or very poor.

Employers in Scotland and Wales were more supportive than those in England and smaller firms tended to be more favourable to the proposals than larger companies.

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