The Construction Industry Training Board (CITB) has unveiled plans to introduce a new, "more relevant" levy for the industry.

Under the proposals, the PAYE Levy on the direct workforce would be reduced from 0.5% to 0.35%. No changes would be made in the net (CIS) Levy charged at 1.25% on the subcontract workforce.

The CITB said the plans would help fund a new, more relevant levy which has been developed with input from the industry and in agreement with the industry's Levy Working Party.

Sarah Beale, Chief Executive Officer at the CITB, said: "We have been listening to our industry and are confident that this levy offer is the best option. It will provide the funding required to deliver the support that industry needs, is simple to administer, and is straightforward for levy payers.


"Next month, we kick off the next stage of engaging with our industry. We will discuss with employers our proposals for how we support them better and consult on how we fund this through the levy. We want to ensure that our offer is relevant, makes a real difference and delivers value for money."

Advantages of the new levy proposal include:

• All employers are treated equally, and equally benefit from a reduced CITB Levy

• It is simple to implement and legislate, requiring only one change in the Levy rate across the board

• It is based on an approach that employers already know and understand

• A simple option helps to focus conversations with industry on how CITB can support it better and deliver value for money for the Levy.

Ms Beale added details of the consultation will be shared in the near future.

(LM/JP)