Home News CITB plans job cuts in response to falling income

CITB has revealed plans to cut costs and address the loss in levy income associated with the COVID-19 pandemic. At the centre of its cost cutting strategy is a plan to axe 110 jobs.

CITB Levy income is expected to fall by a third over three years and the cost saving plans will reduce CITBs payroll bill by 17%, saving £4.5 million per year. It also intends to change its redundancy policy so that there would be no additional draw on levy income to fund redundancy costs.

CITB said it will focus its expenditure on directly supporting construction employers with their key skills, training and apprenticeships needs.  The targetted cuts would protect front-line services to construction employers, with a proportionately greater reduction in back-office and management roles.

Due to the pandemic, CITB announced a suspension of levy collection and a halving of next year’s payment – a reduction of £242.1 million in levy income over three years. Communication with industry by the Construction Leadership Council, CITB and partners since March has shown that employers want resources put into protecting existing skills, prioritising direct employer funding and apprenticeships.

Sarah Beale, CITB chief executive, said:“CITB started the year with an agreed business plan and budget, but the impact of COVID-19 has been severe. Our response – advancing apprenticeship grants and cutting Levy bills – was critical to support construction employers during the crisis.

“But the combination of less industry activity and lower Levy rates has reduced our forecast income over this three year period. We have to cut back our back-office and management costs to maintain a constant focus on giving construction employers the direct support that they need.”

CITB aims to implement the proposed changes by the end of 2020 and to continue to deliver it’s 2020/21 business plan, the Skills Stability Plan. It will launch a four year strategic plan, covering 2021-25 in late September.

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