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Scottish industry votes yes to future CITB Levy – but calls for change


Ian Hughes

The Construction industry Training Board (CITB)’s proposed levy rate has been backed by four out of five of Scotland’s construction employers – alongside calls for reform.   

The vote showed strong support for CITB’s continued levy-raising powers, across employers of all sizes in Scotland, England and Wales.

This comes at the end of the CITB’s triennial Consensus process, during which 14 federations and 4,000 non-federation represented employers were asked whether or not they support the proposed levy rate.

Following CITB’s biggest-ever consultation with industry, the proposed levy rate for this year was set at 0.35% for all PAYE employers, down from 0.5% in previous years. The subcontractor NET CIS rate remains at 1.25%.

Final results from the independent employer survey show that in Scotland, 79.1% of employers surveyed support the Levy, which compares favourably with England, at 71.2%.

Across the three nations, 10 out of the 14 federations voted in favour of the levy. Meanwhile, 72.4% of employers supported the levy and 66.1% supported the revised levy rates.

The survey also revealed that the majority of firms of all sizes in the UK support the levy - 74.2% of large and medium firms, 75.9% of small firms and 71.6% of micro firms all voted in favour. 

Ian Hughes, Partnerships Director for CITB Scotland, said:  “The Consensus process this year has been rigorous, robust and inclusive. The results are clear – construction firms across Scotland see the need for a modern training organisation and it’s very encouraging to see that we have the continued support of the industry for the next three years.– with more employers consulted than ever before.”

Sarah Beale, Chief Executive of CITB, said: “While CITB - both in Scotland and in the rest of the UK - has been broadly supported by our industry, we recognise its calls for radical change. Be assured that we are listening to feedback from all sectors and will use it, along with recommendations from the UK Government’s upcoming review into industry training boards, to directly inform the next stage of our reform process.

“We are completely committed to modernising our organisation by renewing governance, ensuring accountability and improving outcomes. It is what industry expects and we will deliver.”

The results will now be submitted to the Department for Education for verification and approval before the Secretary of State asks Parliament to approve the new Levy order.

- ENDS -

For interviews and further information:

Media contact:

Sarah Stuart, Press Officer 07796 193 237 sarah.stuart@citb.co.uk or press.office@citb.co.uk 

Notes to Editors

Summary

The current levy rates are:
PAYE contribution of 0.5%
Net CIS contribution of 1.25%.

And the payment thresholds are:
Employers with a wage bill of less than £80k are exempt
Employers with a wage bill of between £80k and £399k receive a 50% deduction on the levy assessment
Employers only pay the full assessment if their wage bill is £400k or above.

For 2018-2020 the proposal is that for all levy payers:
The PAYE contribution will reduce to 0.35% (was 0.5%)
NET CIS contribution will remain the same (1.25%)
Payment thresholds will remain the same 

Summary of results

Weighting together the responses from the Prescribed Organisations (POs) and the non-represented employer view from the survey shows a clear level of support for the Levy Proposal, both by number of employers (volume) or by value of levy paid. It also shows that support was consistent across the Three Nations and by employer size.

Overall:

  • 76.9% of employers supported the levy by volume
  • 69.7% of employers supported the levy by value.  

Survey Details:

Carried out by IFF Research Ltd (July – Sept 2017)                                     

Covered employers liable to pay levy that were not represented by any of the Prescribed Organisations (i.e. a Consensus Federation)

Total number of survey responses: 4,000

Results: % Support for Levy Proposal by Volume

 

Yes

No

Don’t Know

Overall

72.4

21.1

6.5

 

 

 

 

Large &Medium

74.2

12.9

12.9

Small

75.9

16.8

7.3

Micro

71.6

22.5

5.8

 

 

 

 

England

71.2

22.0

6.8

Scotland

79.1

15.1

5.8

Wales

79.2

16.3

4.5

Results: % Support for Levy Proposal by Value

 

Yes

No

Don’t Know

Overall

66.1

24.1

9.8

 

 

 

 

Large &Medium

71.8

15.6

12.6

Small

66.9

21.9

11.2

Micro

57.2

34.9

7.8

 

 

 

 

England

65.1

24.3

10.6

Scotland

68.3

26.3

5.4

Wales

81.0

16.5

2.6

 

Prescribed Organisations support for Levy Proposal (i.e. Consensus Federations) as at 02 Oct 2017

Name

Response

Build UK

YES

British Woodworking Federation (BWF)

YES

Civil Engineering Contractors Association (CECA)

YES

Construction Plant-hire Association (CPA)

YES

Federation of Master Builders (FMB)

YES

Finishes and Interiors Sector (FIS)

NO

Hire Association Europe

YES

Home Builders Federation (HBF)

NO

National Association of Shopfitters (NAS)

YES

National Federation of Builders (NFB)

YES

National Federation of Demolition Contractors (NFDC)

YES

Scottish Building Federation (SBF)

NO

Scottish Decorators Federation (SDF)

NO

Scottish Plant Owners Association (SPOA)

YES



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