Draft Industrial Training Levy (Construction Industry Training Board) Order 2026

Rebecca Smith Excerpts

Tuesday 3rd March 2026 General Committees

[Rebecca Smith (South West Devon) (Con)]

It is a pleasure to serve under your chairmanship, Ms McVey. I rise to speak on behalf of the official Opposition.

The draft order that we are debating will allow the Construction Industry Training Board to raise one more year of levy on the construction sector for the specific purpose of funding training. The purpose of the levy is to support the construction industry to have a skilled, competent and inclusive workforce for the future. The levy equates to 0.35% for pay-as-you-earn employees and to 1.25% for those with net payment status under the construction industry scheme, and it is reinvested in the industry by the board.

In 2024-25, the CITB provided nearly £130 million in grant support to construction employers and learners. That has helped to confront the training challenges that persist due to the high number of self-employed workers in the sector. The CITB estimates that 48,000 extra construction workers will be needed each year until 2029 to meet demand—a gap that could grow to 160,000 to fulfil the Government’s housing and retrofit ambitions. The industrial training levy will be vital to bridge that gap, and I welcome this opportunity to scrutinise the Government’s plans.

Nearly 60,000 potential new entrants leave the industry each year. What specific steps is the Minister taking to improve workforce retention alongside efforts to increase recruitment into the construction industry? Employer demand for CITB support has increased by 36% since 2021 while levy rates have remained unchanged, with demand now exceeding levy income. Given the financial pressures and the projected workforce requirements, can the Minister clarify the extent to which the reforms will not only meet the demand, but support the Government’s housing and infrastructure ambitions? We welcome the support provided to apprenticeship starts through the National Employment Savings Trust, but can the Minister say what proportion of those apprentices remain in sustained employment after 12 months?

I should have declared an interest at the beginning: I have family members who have worked for a local construction industry training group. On the restructuring of how training is funded, I highlighted in an Adjournment debate on 4 January that local training groups, which have played an enormous role in training in the construction industry over many decades, are being sidestepped under the new plans, and their local knowledge of the sector could be lost as delivery changes.

In that debate, I asked how funding will be allocated to areas that do not have a strategic local authority, such as my constituency of South West Devon. That is a key part of how this draft order will be delivered, and I would welcome further clarification from the Minister on this issue, together with assurances that areas without a strategic local authority will not be disadvantaged in any way as the transition takes place. We will not oppose the regulations, but we would appreciate it if the Minister addressed the concerns that I have raised.