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Press Releases 2016

ECITB secures industry-wide backing for new levy proposals

ECITB has successfully concluded its recent consultation on industrial training levy rates for the period 2017-2019, with the vast majority of levy payers expressing support for the proposals.

08 November 2016/Categories: Media News, Press Releases 2016

ECITB carried out the consultation at the request of the previous Minister of State responsible for ITBs who asked the training board to seek a new mandate from industry in light of the introduction of the Apprenticeship Levy and the challenging operating environment facing many engineering construction sectors. In taking these developments into account, ECITB’s consultation proposed slightly lower levy rates for site-based and other workers for the period in question, alongside a commitment to maintain planned grant expenditure for training by drawing on our financial reserves.

The overwhelming majority of ECITB levy-payers expressed their support for our proposals. 78% of levy-paying employers voted in favour of the proposed levy rates and collectively, these employers account for 87% of levy payments. Including abstentions, the proportion of levy payers deemed to be in favour rises to 96%, accounting for 90% of levy payments respectively. For a summary of the proposal see the footnote below.

The substantial level of support that ECITB have received is not only greater than our last levy consultation exercise in 2014, but has also broadened to include nuclear, subsea as well as many levy-paying companies operating in the renewables sector, alongside the more traditional engineering construction sectors.

Chris Claydon, Chief Executive of ECITB said:

“I am delighted that industry has overwhelmingly backed our proposals. This a real vote of confidence in ECITB and the work we do on behalf of the engineering construction industry, during what is a challenging time for many ECI sectors.

The strength and breadth of this new mandate places us in an excellent position to build on our successful track record of driving skills improvements throughout the industry. We will continue to develop and deliver high-quality qualifications, standards and accredited training solutions, including our successful graduate and apprenticeship support programmes.

We will also be looking to deliver more strategic initiatives and are currently developing a new strategy to guide us through the next three years. This work will be crucial to ensuring the industry has the skilled workforce it needs to deliver the UK’s critical infrastructure needs and will also help increase the availability of home-grown talent, a task that has become even more critical in light of the Brexit vote”.

ENDS

Contact details:
David Nash, Head of Policy
david.nash@ecitb.org,uk

Avril Goodenough, Communications Manager
avril.goodenough@ecitb.org.uk

Footnote:
Summary of ECITB Industrial levy proposals for 2017-2019

For site activities, the consultation proposed that ‘in-scope’ employers pay levy at a rate of 1.2% of the total emoluments and payments paid in respect of site employees and labour only contractors engaged in engineering construction activities at or from the employers’ establishments. Employers with aggregate site emoluments and payments made in respect of their leviable establishments of less than £275,000 during each base period will be exempt from the site levy.

In respect of off-site activities, ECITB proposed that ‘in-scope’ employers pay levy at a rate of 0.14% of the total emoluments and payments paid in respect of off-site employees and labour only contractors engaged in engineering construction activities at or from the employers’ establishments. Employers with aggregate off-site emoluments and payments made in respect of their leviable establishments of less than £1,000,000 during each base period will be exempt from the off-site levy.

The proposals relate to levy periods ending on 31st December 2017, 31st December 2018 and 31st December 2019 and apply in respect of base periods of twelve months commencing on 6th April 2016, 6th April 2017 and 6th April 2018.

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