New CITB levy could have negative impact on training
Trade body Build UK has responded to the consultation on the additional levy on construction firms saying it would have a “devastating impact” on training within the construction industry.
With the lack of skills in the construction industry the Government wants to support 3 million apprenticeships by 2020 to meet the growing demand.
The new plans could lead to large construction companies facing two levy payments instead of the current one payment which some employers have been passing on to worker illegally .
Build UK commented saying: “Employers in construction recognise their responsibility to contribute to the cost of industry training and apprenticeships through the CITB Levy and Grants Scheme.
“However, the majority of large employers would not be prepared to pay two levies, and we anticipate that the introduction of the Government’s Apprenticeship Levy as proposed would lead to firms withdrawing their consensus support for the existing system which would have a devastating impact on training in the sector.”
Build UK wants to see a hybrid model introduced which does not “significantly increase costs for large employers.”
The CITB would still exist but be radically reformed to cut down on bureaucracy and give employers a greater say on where money is spent.