CITB agrees to cut levy bills by 25% for two years

Employers will continue to have a payment holiday on the levy until September and then up to a full year to pay the 2020/21 levy.

CITB will also offer a 50% discount on the 2021/22 levy rate meaning employers will pay 18 months’ levy out of 24 making an overall saving of 25% across two years.

Practical example of how the changes affect contractors

An employer with an average annual levy bill of £1,200 would normally pay £2,400 over 2020-22. Instead, they will pay nothing from April to August this year and then take advantage of spreading the costs – £100 per month up to February 2022, paying £1,800 overall

The CITB also said it would not be holding its planned triennial consensus consultation this year when the industry is given a chance to vote on the future of the organisation.

It will now seek the views of industry employers and federations about the development of a new strategic plan, covering 2021-23, with the plan expected to be published in September.

As a result of these moves CITB said its levy income over the two-year period, 2020-22 will fall by £166m.

CITB’s cash reserves, which stood at £95m, are expected to fall to £17m by the end of August and to £8m by the end of March.

updated: 26/06/2020