Construction News

19 May 2025

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Employers vote to keep CITB levy

5 hours Construction employers have voted in favour of the Construction Industry Training Board’s 2026-29 levy proposals.

CITB chief exec Tim Balcon promises a simpler, more responsive training system
CITB chief exec Tim Balcon promises a simpler, more responsive training system

The consensus process is the mechanism by which the CITB seeks approval from employers to collect the statutory training levy which funds the board’s activities.

The consensus is usually undertaken every three years and more than 50% of respondents must agree to achieve consensus.

This year 67.2% of levy payers agreed with the proposal while 32.8% disagreed. An even higher percentage of ‘prescribed organisations’ – or trade bodies – supported the proposals with 89.3% (12 out of the 14) in agreement. Only the National Federation of Builders (NFB) and the Finishes and Interiors Sector (FIS) voted against the proposals.

The result means that levy rates are likely to remain the same for 2026-29. The proposed Levy arrangements are: 

•       PAYE: 0.35%

•       Net paid (taxable) CIS subcontractors: 1.25%

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•       Increase the levy exemption and reduction thresholds to £150,000 and £500,000.

If the employee payroll and net paid (taxable) CIS subcontractors combined is less than £150,000, employers will not pay a levy and if it is between £150,000 and £499,999, they will receive an automatic reduction of 50%.

CITB said that this approach was supported by a majority of employers at a recent consultation and means that it can continue to support its smallest employers.

These results have now been submitted to the Department for Education to ratify. Once ratified a new levy order can be raised.

CITB chief executive Tim Balcon said: “The levy is designed to ensure that construction employers of all sizes feel supported with their skills and training needs. It plays a vital role in investing in the British construction industry, ensuring the development of a skilled workforce to meet the sector's current and future demands.

“We are really pleased that levy payers continue to be supportive of the levy proposals. We will now focus on delivering our strategic plan through which we aim to support at least 35,000 employers over the next four years and establish a simpler, more responsive skills and training system better aligned with industry needs.”

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