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Consensus 2021

 

To raise a Levy we must consult with the construction industry to gain industry support for the proposals for the next Levy Order. We need to show that there is this support every three years. This process is known as Consensus. Consensus is not an election or vote on the future of CITB, it is a consultation on how CITB will generate Levy over the next three years.

Consensus was due to take place last summer. With the onset of COVID-19, we spoke to employers, industry groups and stakeholders and many suggested that they wanted us to focus full-time on helping the industry meet the challenges posed by the pandemic. The Board took the decision to postpone the Consensus process and seek a one-year 2021 Levy Order for this year’s Levy assessments at reduced Levy rates in recognition that industry needed immediate support. We sought views from across industry on our plans for the months ahead and submitted our Strategic Plan 2021-25 to the Department for Education (DfE), along with our proposal for the one-year 2021 Levy Order.

In February having sought the view of industry, the Board confirmed the Consensus process would be reinstated this year. You can read more about the Consensus process here

Consulting on the Levy Proposals 2022-25

In preparation for Consensus, we ran a industry-wide consultation on the draft Levy Proposals 2022-25. This consultation was opened from 1 March-11 April 2021.  This is an important part of the Consensus process:

  • Feedback from this consultation was analysed and fed into the final Levy Proposals by the Levy Strategy Committee. The Consultation Report (PDF, 440KB) shares the findings. 
  • These Levy Proposals have been approved by the CITB Board
  • The Consensus process shall now commence on the 14 June - 15 August 2021 

The Levy Proposals 2022-25

  • To replicate the pre-COVID Levy rates, as assessed in 2018 – 2020:
    • PAYE: 0.35%
    • Net paid (Taxable) CIS Sub-contractors: 1.25%.
  • To maintain the Levy Exemption Threshold of £120,000 applied in the 2021 one-year Levy Order, which was an increase of 50% from £80,000 used in 2018-2020
  • To retain the 50% Reduction in Levy for employers with a wage bill of £120,000 or more, but below £400,000.

Whilst the recommendation is to retain pre-COVID rates for 2022-25, many employers are likely to pay less CITB Levy in 2022-23 as a result of the impact of COVID on business activity in 2020-21 which may have led to a lower total wage bill. 

In making the Levy Proposals for 2022-25, the LSC considered providing stability for employers, a fair distribution of payments, transition from the current reduced Levy and getting back to a position where industry can be best supported, without putting extra burden on Levy payers.

What happens next?

Depending on whether you are a member of a Prescribed Organisation or not will affect the way you may be approached for your views:

  • If you are a member of one of the 14 Prescribed Organisations, they will seek the views of their Levy-paying members and will respond to the Consensus question, to CITB, on behalf of their members.
  • If you are not a member of a Prescribed Organisation, and are due to pay the Levy, you may be contacted by an independent market research company (IFF Research) between 14 June – 15 August 2021. We aim to contact a representative sample of 4,000 Levy-paying employers.

This feedback will then be collated and analysed to obtain an Industry-wide view.  Consensus results due to be published in Autumn 2021.