MPs approve levy renewal

They also approved unanimously a number of industry-led revisions to the CITB-ConstructionSkills levy order.

Approval for the levy order comes six months after 13 federations pledged continued support for the levy.

The changes to the levy order include:

• The introduction of a small business levy reduction: employers whose salary bill (for staff and payments to labour-only sub-contractors) is between £80k-100k will receive a 50% reduction on their levy payments
• Ironing out historical inconsistencies: employers will now pay levy on catering, agricultural and part-time staff
• Revision of the definition of a labour only agreement (LOA) to more closely align with industry’s views

Sections of the levy that will remain the same are:

• The levy rate will remain  at 0.5% on payments to directly employed workers (PAYE) and 1.5% on payments to labour-only sub-contractors (LOSC)
• The threshold for the small business levy exemption remains at £80k

The levy working party will continue to work with the industry to simplify the levy process and it will now be looking at further changes for the 2015 levy order.

Skills minister John Hayes described the levy as “an important measure to safeguard skills and training in construction by ensuring the cost of training is shared among employers more evenly”.

CITB-ConstructionSkills chief executive Mark Farrar said: “We are delighted that the changes to the levy have been approved giving continued to support the important work of CITB-ConstructionSkills. Over the last 18 months we have been working hard with industry to revise the levy, ensuring that it reflects the desire of both employers and industry federations for a simpler and more consistent system.

“The levy is as vital today as it has always been and by reinvesting it through grants and training it will help the industry return to growth - so it can play its part in improving the overall economic health of the nation. The levy will also support the industry as it adapts to a time of unprecedented change.”

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