CITB-ConstructionSkills To Be Retained Under Public Bodies Review

Following a review of public bodies undertaken by the Cabinet Office, the Government has announced that CITB-ConstructionSkills is to be retained in the public sector, continuing to report to Ministers at the Department for Business, Innovation and Skills (BIS).  The announcement also paved the way for reforming the organisation to ensure that it continues to be fit for purpose into the future. The decision came after months of speculation about the future of the Industry Training Board and the Levy system after leaks about the wider Public Bodies Review were published in the Daily Telegraph.

A BIS spokesperson said: 'Government has agreed that the Industry Training Boards for Construction, Engineering Construction and Film will be retained as Non-Departmental Public Bodies.  The ITBs are owned and directed by the employers in their industry and act independently of Government. The central purpose of the ITBs is to meet the skill needs of their industries through consensus support for a statutory levy.'

Speaking after the announcement, James Wates, Chairman of CITB-ConstructionSkills said, "We understand that in these tough times, Government has a duty to ensure it delivers best value for money so we welcome the news that CITB-ConstructionSkills is to be retained under the Public Bodies Act. We view the decision as a positive endorsement of the Levy and the work that we do to add value to our employers by ensuring industry has the right skills in place, to improve standards and contribute towards economic growth."

Introduced in the 1960s, CITB-ConstructionSkills and the Levy system is tasked with ensuring that the industry invests in skills – attracting and training new entrants and equipping its existing workforce with the skills needed to ensure construction projects are completed safely, on time, to cost and to the highest standards.

For over forty years, the industry has supported this collective measure because of the benefits it brings. Last year CITB-ConstructionSkills delivered a good return on investment by collecting £163m in levy, and supplementing it with funds from commercial activities, to return £207m to industry through grants, support for apprenticeships, business advice, specialist support and other funding for employers and industry groups.  A recent survey showed that even in these tough times, 69% of all employers support the continuation of the Levy-Grant system. 

Despite this vote of confidence, the organisation is committed to delivering more and improving the way it works with industry.

James Wates said: "Our industry is changing, and we need to change with it. The Board recognises that continuing to reform the organisation could be beneficial to improve its overall effectiveness."

Since succeeding Sir Michael Latham as Chairman in April 2010, James Wates and the industry-led Board have been looking at how the industry could secure a better deal from the Levy if the organisation had more flexibilities and freedoms to operate.

Mr Wates added: "A more commercial approach and a drive for income from other sources, added to employer funds, could provide additional funding for investment in a wider range of training activities needed by industry. Now that we know we are to be retained, our focus is to ensure that we deliver a sustainable business in the future that continues to add value, and maintains strong industry support."