The Scottish Building Federation (SBF), Scottish Plant Owners Association (SPOA) and the Scottish Decorators’ Federation (SDF), the only three Scottish industry bodies officially mandated to do so, are surveying their memberships for views on the future of the Construction Levy administered UK-wide by the Construction Industry Training Board (CITB).
Members of both SBF and SDF have until Friday the 22nd September to complete an online survey about CITB proposals to amend arrangements for the Construction Levy, which are due to take effect for a three year period starting in April 2018.
Meanwhile, SPOA will be contacting all of their members directly in order to ascertain their views on the future of CITB’s levy-grant system.
Since its establishment in 1964, CITB has consulted industry every three years on future arrangements for the Construction Levy. Across the UK, a total of 14 organisations are prescribed to respond to this consultation process based on a consensus of their members’ views. SBF, SPOA and SDF are the only wholly Scottish membership bodies to feature on this list of prescribed organisations.
With the introduction of the new UK Apprenticeship Levy, payable by large employers across all industries in the UK from April this year, CITB is proposing to adjust arrangements for the Construction Levy to reflect concerns from larger construction employers about the financial impact of having to contribute to both levies simultaneously.
To address these concerns, CITB is proposing that, from April 2018, the rate of contributions to the Construction Levy through employees’ PAYE should be reduced from 0.5% to 0.35%. At 1.25%, it proposes that the rate of net contributions made to the Construction Levy by subcontractors through the Construction Industry Scheme (CIS) should remain the same as currently applies.
Commenting on the survey, Scottish Building Federation Managing Director Vaughan Hart said:
“As one of three recognised consensus federations representing the Scottish construction industry, SBF is keen to hear the views of our many hundreds of members located throughout Scotland about proposals for the future of the Construction Levy currently being put out to consultation by CITB. This is an important opportunity for industry employers to make their views known and I would encourage as many SBF Members as possible to fill out our short online questionnaire.”
Scottish Decorators’ Federation Chief Executive Ian Rogers said:
“This is probably the most important vote on consensus that has taken place since CITB was established in 1964. As employers are aware, CITB has gone through many changes over the last few years which have often been detrimental to the industry’s prospects. During this time, we have consistently argued that CITB needs to listen carefully to the voice of industry bodies. By responding to our survey, SDF members have an opportunity to make their voices heard and instigate much needed change.”
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Notes to Editors
- Further information about the construction industry’s consensus process can be accessed at: http://www.citb.co.uk/about-us/how-we-are-governed/consensus/
- Further information about the UK Apprenticeship Levy is available at: https://www.gov.uk/government/publications/apprenticeship-levy-how-it-will-work/apprenticeship-levy-how-it-will-work#pay-apprenticeship-levy
- The Scottish Building Federation (SBF) promotes the interests of the construction industry to a diverse range of stakeholders and is the leading employers’ federation for the industry, representing hundreds of companies from Orkney to the Borders.
- The Scottish Plant Owners’ Association (SPOA) is an unincorporated trade association founded in 1950. Funded by member subscriptions, SPOA’s guiding aim is to further the interests of its members on all matters affecting construction plant ownership and usage.
- The Scottish Decorators’ Federation (SDF) was founded in 1857 and is the representative body for the painting and decorating industry in Scotland and interestingly has a branch in England. SDF negotiate the wages and conditions for its craft and are the custodians of the working rules. Its membership varies from sole traders to the largest contractors in the U.K, as well as some very well-known manufacturers with household names.