Three quarters of construction firms say scrap the levy and the CITB

Nearly three quarters of levy-paying construction firms want to scrap the levy and the CITB, according to a major new survey conducted by Survation, a leading independent research company, and commissioned by Hudson Contract. 

The survey comes as the CITB prepares to seek industry support for renewal of its levy-raising powers, including changes that could increase bills for small and micro employers.

Hudson is calling for the CITB to be stripped of its levy-raising powers and absorbed into the new Skills England training body.

Survey results

A total of 1,042 companies responded to the survey within just a few weeks, demonstrating the strength of feelings on the topic, with only 12 per cent of all respondents saying they would keep the levy and the CITB if given the choice.

Some 58 per cent (598) of those surveyed are registered levy payers who should be given a say during consensus next year. We believe many others should be consulted if the CITB changes the rules because they will be brought into levy for the first time.

• A decisive 74 per cent of those currently paying want to scrap the levy and the CITB
• Just 17 per cent are happy to continue paying the levy at the current rates and retain the CITB
• Only 17 per cent are members of one of the 14 trade federations known as Prescribed Organisations. This brings into question why they are given so much weight by the CITB during consensus.  

Proposed changes to levy system

Survation also asked firms for their opinion on the CITB’s plans to levy them on the use of labour providers – such as agencies, payroll firms, commercial contractors, umbrella companies – at one per cent of the total labour cost. 

Of the 1,042 respondents, 67 per cent said they disagreed with the change, 21 per cent would need to see a levy calculation to understand the impact before deciding and just three per cent said they agreed. 

In conclusion, Survation said: “The survey results indicate a clear and significant dissatisfaction with the current CITB levy structure and proposed changes. The majority of respondents, regardless of trade federation membership, favour scrapping the CITB levy entirely. Furthermore, there is considerable opposition to the CITB’s proposed levy changes regarding labour providers.”

Industry response

Commenting on the findings, Ian said: “At the last consensus in 2021, the CITB claimed that two thirds of likely levy payers agreed with its levy proposals. 

“If this was true, our survey findings suggest that support for the CITB has collapsed to barely one in five levy payers. This is no surprise to us as we speak to a lot of construction firms and it is very hard to find anyone that supports the CITB. In fact, many of the comments made during the survey could not be printed.”

Ian added: “The CITB is currently surveying employers to find out how many use labour providers and to what extent because it is planning a new levy hike next year. This would see most small employers pay significantly more than they do now, as shown by our Freedom of Information requests. However, there is no sign of a levy calculator on the CITB’s website or any other relevant information to let people know what is coming down the pipeline. 

“There is a complete lack of openness despite the last government ordering the CITB to be more transparent and improve engagement with the industry at the time of the last review carried out in 2017 and led by Paul Morrell. 

“Publication of the latest government review of the CITB, this time led by Mark Farmer, was due to be published months ago but has been delayed yet again amid reports it is heavily critical of the training board’s performance. 

“We believe the new government has a perfect opportunity with the creation of Skills England to scrap the CITB and its levy and roll them into the new national training body.

“Skills England will gain functions from the failing Institute for Apprenticeships and Technical Education (IfATE), which was previously led by Peter Lauener, who now chairs the CITB. With a brace of failures, one wonders where he will pop up next!

"The skills shortages in construction are shared across manufacturing, the care sector, the armed forces and education. So why construction has to have two levies and two skills bodies makes no sense. A joined-up approach across the board to link school leavers and colleges with employers in all industries, would work better for everyone and fit with the government’s plans.’’