Consultation to start on new CITB levy proposal

Sarah Beale

CITB has launched its new levy proposal for industry, which would see a reduction in the levy for all firms to fund a new “more relevant” offer and a reformed grants scheme.

The organisation said the proposal would see the PAYE levy on the direct workforce cut from 0.5% to 0.35%. There would be no change in the net (CIS) levy charged at 1.25% on the subcontract workforce.

The new levy offer has been developed with industry input and in agreement with the industry’s Levy Working Party. Subject to agreement from industry, the new levy would come into effect from April 2018.

CITB said the advantages of the levy proposal include that all employers are treated equally and equally benefit from a reduced levy; it is simple to implement and legislate, requiring only one change in the rate across the board; is based on an approach employers already understand; and a simple option helps focus conversations with industry on how CITB can better support it and deliver value for money.

Sarah Beale, CITB CEO said, “We have been listening to our industry and are confident that this levy offer is the best option. It will provide the funding required to deliver the support that industry needs, is simple to administer, and is straightforward for levy payers.

“Next month, we kick off the next stage of engaging with our industry. We will discuss with employers our proposals for how we support them better and consult on how we fund this through the Levy. We want to ensure that our offer is relevant, makes a real difference and delivers value for money.

“We want as many as employers as possible to share their views and we will shortly be sharing details on how to get involved in the consultation.”