17.07.15 CITB Levy requires “significant reform”

Chancellor George Osborne announced in Budget 2015 that 3 million new apprenticeships will be created by 2020, funded by a Levy on large employers. He stated that firms committed to training apprentices will be able to get back more than they put in.

On the back of this announcement, the CITB construction industry levy has been called into question. The Department for Business, Innovation and Skills has said that a new system would “remove the challenges faced by current industry training boards” and “make it simpler for businesses that operate across multiple sectors.” These comments have led to speculation that the CITB levy could be scrapped.

Mr Radley, CITB Director of Policy, has highlighted the £2.3bn the CITB had paid out in grants over the past 5 years and the 500,000 apprentices the CITB has helped to train. He commented on how the levy had allowed the construction industry to “retain talent during the hard times and flourish when times are good.”

However, Mr Radley acknowledges that the CITB needed to look at how it invested in apprenticeships so that it could meet the skills challenges the construction industry faced. The CITB believe it is crucial that it is involved in helping to shape an approach for the next generation of apprenticeships.  Mr Radley said that the CITB could offer insights and advise Government on how a new system could work.

How the CITB interacts with the new Government system will need to be arranged to ensure the best solution for the construction industry and for apprentices.