Consensus consultation on Levy Proposals to start next month
The Construction Levy rates will remain the same for 2022-25 under proposals confirmed by the CITB Board on 21 May, with industry support to be measured this summer.
CITB consulted with construction employers and industry representatives earlier this year on draft Levy Proposals agreed by the Levy Strategy Committee of employers and experts and signed off by its Board.
The final proposals are that the Levy is assessed at the pre-pandemic rates of:
- PAYE at 0.35%
- Net paid (Taxable) CIS Sub-contractors at 1.25%
Approximately 40,000 employers with a wage bill below £120,000 will continue to be exempt, with 14,000 seeing a 50% reduction due to having a wage bill of between £120,000 and £400,000. It is anticipated that due to the pandemic more construction businesses could qualify for exemptions and Levy reductions due to lower wage bills.
The final stage of CITB’s three-yearly statutory consultation takes place between 14 June and 15 August on the Levy proposed to fund CITB support for construction skills over the next three years. The following Consensus question will be asked: do you agree that the Levy Proposals are necessary to encourage adequate training in the construction industry?
Steve Radley, Director of Strategy and Policy at CITB, said: “To support employers, Levy bills were cut by half for 2021, with the Consensus process delayed by a year to focus on supporting immediate skills needs.
“We have since had clear feedback from industry, including the 14 Prescribed Organisations, that CITB should proceed with Consensus this year.
“We now expect significant growth in construction output and its skill needs over the next three years. We have recently agreed a plan to help meet these needs and we are now asking industry whether it supports the Levy Proposals to finance it.”
Of 33,000 Levy-paying employers, around 7,000 have declared they are represented by Prescribed Organisations, so their views will be gathered through their Prescribed Organisation. Of the remaining 26,000 employers, a representative sample of 4,000 will be surveyed by telephone by IFF research Ltd, an independent research company.
In 2017, the last time the Consensus process was undertaken, there was agreement to the Levy Proposals from 76.9% of construction industry respondents.
The results of the 2021 summer consultation will be published in the autumn.
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