If CITB wants to raise a Levy it has to consult with the construction industry. It has to gain the support of industry about the proposals for the next Levy Order.
CITB must show that it has this support every three years. This consultation process is known as Consensus.
Once Consensus is achieved, a Levy Order may be made by the Secretary of State to authorise CITB to collect a levy from employers so it can invest in the skills and training the industry needs.
How is Consensus achieved?
The Industrial Training legislation requires CITB to take “reasonable steps” to satisfy the Secretary of State that the Levy proposals are necessary to encourage adequate training in the industry. The Industrial Training Levy (Reasonable Steps) Regulations 2008 set out what these “reasonable steps” are.
Prior to consensus, CITB works with members of the industry to formulate the Levy proposals after which CITB consults upon the Levy proposals with “prescribed organisations” (consensus federations) and samples all “unrepresented persons”.
How is Consensus calculated?
A set of Consensus rules then guide CITB to ensure through the Consensus calculation.
The following rules apply to the calculation:
- The most recent assessed Levy Return is used as the basis for the calculation.
- Only those likely to be liable to pay Levy under the Levy proposals are taken into account in the calculation.
- Employers not ‘positively’ identified (including ‘don’t knows’ and ‘unknown’), as being a member of a prescribed organisation (ie Consensus federation or sub-federation) will be included in the non-Consensus federation list.
- Establishments listed on the Levy register shall be treated as individual entities.
- An employer who is a member of multiple prescribed organisations (Consensus federations), shall have their Levy value and vote split equally between the prescribed organisations they belong to.
- Sub-federations will be included in the parent federation data where the parent federation is a prescribed organisation (Consensus federation). Where a sub-federation is also a prescribed organisation, their members will be counted in the sub-federation.