CITB plans levy cut in bid to survive

Grant Prior 5 years ago
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The CITB is proposing a levy cut to win the industry over as it fights for its future.

The training body is battling against a wave of industry criticism and the spectre of a general apprenticeship levy on big firms by the government.

Now the CITB is proposing the levy paid by qualifying firms be cut from 0.5% to 0.35%, while the CIS Levy remains at 1.25% on the subcontract workforce.

The move comes as the CITB fights for its life in a bid to survive a Government review of levy-funded training bodies.

The Enquirer revealed last month that the training body has been spending thousands of pounds on consultants in its bid for survival, and in-fighting had broken out among management factions.

To renew its Levy Order from the government the CITB must demonstrate there is industry consensus that it should continue to collect a levy for training funding.

This will be sought in August and September, with a Government decision expected by February 2018. If backed the new levy would come into effect from April.

Sarah Beale, CEO at the CITB, said: “We have been listening to our industry and are confident that this Levy offer is the best option.

“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.”

Ian Anfield, Managing Director at Hudson Contract Services Ltd said: “While we welcome the CITB’s admission that significant change ‎is necessary, to tinker with the levy amount is disappointingly unimaginative.

“Shops discount the products that aren’t selling, and that’s what they’ve done with the levy. But what they should be addressing is the reason that the levy isn’t selling: it isn’t fit for purpose.

“As has already been demonstrated, most employers train workers outside of the levy and grant system.

“The CITB can best ensure its future by focusing on providing training services in a real, competitive market.”

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