by Iain McIlwee | 25 Jun, 2020 | Main News Feed
- No Levy payments before September and then, up to 12 months to pay
- Next year’s Levy bills to be delayed and 50% cut proposed
- Skills Stability Plan protects apprenticeships, Grants Scheme and employer funding
- Consensus will not take place this year to allow focus on recovery
CITB has today announced its plan to help employers recover from the impact of Coronavirus, including a substantial reduction in Levy bills.
The Skills Stability Plan 2020-21 protects apprenticeships and provides direct funding to employers to adopt new ways of working needed in the wake of Covid-19.
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. In addition, CITB will propose a 50% discount on the 2021/22 Levy rate. This means employers will pay 18 months’ Levy out of 24, making an overall saving of 25% across two years, providing help when it is most needed.
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.
These changes will see CITB’s forecast Levy income drop by £166m across two financial years. Despite this large drop in income, the Skills Stability Plan will protect apprenticeships, direct funding to employers and the Grants Scheme. CITB is also cutting costs and using its reserves to support employers’ skills needs.
CITB will work with other industry partners to support workers who have lost their jobs or seen their apprenticeship disrupted,matching them with a new employer, including through exploring a talent retention scheme. This will build on the support already provided to help appprentices complete their programmes through up-front grant payments to current year 2 and 3 apprentices, training materials being made available online and support from Apprenticeship Officers to allow learning to continue remotely.
The plan has also prioritised direct funding for employers through the Skills and Training Funds, with £8m earmarked for small and micro businesses, £3.5m for medium-sized businesses, with a £3m Leadership and Management Fund for large firms. This will help employers train to adapt to the new working environment and update the skills of their workforce.
CITB Chief Executive Sarah Beale said: “This represents a radical plan of action that balances the need for a reduction in the Levy at this time, alongside vital investment in the skills needed by employers now and in the future.
“It is the result of hundreds of conversations with employers across the length and breadth of Britain and I’m confident it meets the sector’s immediate needs. We are committed to making the Levy work hard to protect apprenticeships and support hard-pressed employers as they equip themselves for the challenges and opportunities ahead.”
CITB 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.
Sarah Beale continued: “We have spoken to employers and federations and most have suggested that they want us to focus full-time on helping the industry meet the challenges posed by COVID. We have confirmed with the Department for Education that we will not run the usual Consensus process and instead we will speak to employers and industry groups to seek their views on our plans for next year.
“We will continue to be responsive and collaborative, working closely with the sector and Government to return the industry to growth. We will listen to industry and respond to its priorities and give every employer the confidence that we wish to understand and learn from their concerns and ambitions.”
Mark Reynolds, Mace Group Chief Executive and Skills Workstream Lead at the Construction Leadership Council (CLC), said: “Our industry has come together to develop an effective plan to come back from the effects of Covid-19, as detailed in the CLC’s Roadmap to Recovery document. CITB’s Skills Stability Plan builds on this work and clearly outlines how they will play their part in delivering the skills we need. We very much support efforts made by the CITB to substantially reduce the Levy. It is right that Consensus is delayed so we can work together to make sure that our recovery, still in its early stages, is as strong as possible.”
About CITB
CITB supports the skills needs of construction across England, Scotland and Wales. It attracts talent to the construction sector so employers have an adequate recruitment pool, and encourages employers of all sizes to access the skills and training necessary to grow their businesses.
Details of expected Levy bill process – what will be billed when for payment when
The 2019 Levy Assessment that was due to be sent to employers in April 2020 will now be sent to employers in August 2020. For employers opting to pay this bill by Direct Debits, the payments will run for up to 12 months from September 2020 to August 2021.
The 2020 Levy Assessment will be deferred for six months and sent to employers in August 2021.The rates proposed for this assessment will be half the value that would ordinarily have been applied – so if the agreed Levy rates remain at 0.35% for PAYE and 1.25% for Net paid sub-contractors then these will halved so only half of the assessment will be levied. Employers opting to pay by Direct Debits will pay this assessment in up to six monthly instalments between September 2021 and February 2022. The final rate
CITB Skills Stability Plan 2020-21
by Iain McIlwee | 24 Jun, 2020 | Main News Feed
The Scottish economy is now in its deepest recession in living memory, according to the latest Economic Commentary by the Fraser of Allander Institute at the University of Strathclyde.
The Institute points out that whilst the depth of the collapse in GDP is largely artificial and entirely due to the lockdown, what matters is how quickly activity bounces back once the restrictions are lifted.
All signs are however, that there will be some scarring and it will take some time before the economy recovers to a ‘new normal’.
The outlook for the next few months looks hugely challenging. The unprecedented government support has provided an invaluable safety net –
■ Around £10 billion of funding support for the Scottish economy through additional resources for the Scottish Government and various business support schemes. Equivalent to over 5% of GDP.
■ Over 750,000 employees furloughed & self-employed workers supported via the Coronavirus Job Retention and Self-employment Income Support Schemes.
Considering the complexity of restart, supply chain disconnects, lower demand and dwindled corporate cash reserves the expectation is that there will be a spike in closures and job losses in the next few weeks and months as firms look ahead to the rolling back of government support later in the year.
The Commentary considers a range of scenarios from a more optimistic scenario where confidence builds momentum, through to a more pessimistic scenario which includes a second wave of infection.
In the optimistic scenario, the economy is projected to take until the end of 2021, at the earliest, to fully recover lost output. In the pessimistic scenario, it could be 2024 before a ‘new normal’ is reached.
The Institute also points out that even when the economy returns to growth, the underlying structure of Scotland’s business base will be altered forever.
You can read the full report here
by Iain McIlwee | 23 Jun, 2020 | Main News Feed
The Prime Minister Boris Johnson has today announced that (in England) the two-metre social distancing rule will be replaced with “one-metre plus” guidance from the 4th July. In another step towards “normality”, the “one-metre plus” approach will mean that people can be one metre away from each other as long as other measures are put in place to limit the transmission of the virus, such as “wearing face coverings, installing screens and facing away from other people”. Mr Johnson reiterated in his speech to the house that people should still say two metres apart from others where possible.
In his speech Mr Johnson advised the House that Government have now ordered over 2.2 billion items of protective equipment from UK based manufacturers, many of whose production lines have been called into being to serve this new demand. He also announced that new guidance will be published on how businesses can reduce the risk by taking certain steps to protect workers and customers. “These include, for instance, avoiding face-to-face seating by changing office layouts, reducing the number of people in enclosed spaces, improving ventilation, using protective screens and face coverings, closing non-essential social spaces, providing hand sanitiser and changing shift patterns so that staff work in set teams. And of course, we already mandate face coverings on public transport. Whilst the experts cannot give a precise assessment of how much the risk is reduced, they judge these mitigations would make “1 metre plus” broadly equivalent to the risk at 2 metres if those mitigations are fully implemented.”
The Prime Minister reflected on the importance of this announcement to the hospitality sector and plans to re-open large sections on the 4th July stating – “I know this rule effectively makes life impossible for large parts of our economy, even without other restrictions. For example, it prevents all but a fraction of our hospitality industry from operating.” He has committed to publishing findings of the expert review in the Commons Library this week.
Responding to the announcement FIS CEO Iain McIlwee said: “This measure is less targeted at construction and more at the fact that From July 4, the hospitality sector will start to re-open. That said, we now need to review our own guidance – with only 12% of our members able to operate profitably under the existing Site Operating Procedures, this announcement could have a huge impact on productivity and be a vital lifeline. I think it is important to echo what the Prime Minister said in his speech – where it is possible to keep 2 metres apart people should. The sector has reacted well to adapting processes to enable maintaining safe working distances, and not withstanding productivity, we also know that behaviours are one of our biggest challenges. We need to continue re-enforcing the importance of safe working distances – evidence tells us that the risk will increase the closer we get and we need to continue to do all we can to protect our people and prevent any transmission of the virus”.
In the speech the Prime Minister also reminded that the administrations in Scotland, Wales and Northern Ireland hold responsibility for their own lockdown restrictions and they will respond to the united view of the Chief Medical Officers at their own pace, based on their own judgement.
Responding to the statement the Construction Leadership Council commented:
“The Government is reviewing its ‘Safer Working’ guidance in light of this. Consequently, the Construction Leadership Council (CLC) will review its own guidance (including the Site & Branch Operating Procedures) and update it to reflect the new requirements.”
You can read the full speech here.
Details of current H&S Guidance including PPE from FIS is available in our H&S COVID Toolkit Here including detailed guidance on PPE and our Task Assessment Tool.
by Iain McIlwee | 18 Jun, 2020 | Main News Feed
A £230 million Return to Work package has been unveiled to help stimulate Scotland’s economy following the coronavirus (COVID-19) pandemic.
The initiative covers construction, low carbon projects, digitisation and business support and will provide a flow of work for businesses and support jobs. It is funded by the reallocation of underspends from schemes interrupted by COVID-19.
New projects featured in the package include:
- £51 million for business support, including boosting high growth companies
- £78 million for construction, including £40 million for regeneration projects and £20 million for roads maintenance
- £66 million to kick-start our green recovery, including £7 million to equip buses for physical distancing and the return to work
- £35.5 million for digitisation, including justice and education services
Finance Secretary Kate Forbes announced the package today as she opened a Scottish Parliament debate on the financial implications of COVID-19. She also sought Parliament’s support for the Scottish Government’s call to be granted additional financial powers to manage the crisis.
Ms Forbes said:
“The impact of COVID-19 has been enormous on both businesses and individuals and the Scottish Government has so far spent more than £4 billion tackling its effects.
“We are also taking steps to accelerate our economic recovery and this package ensures that we can make immediate use of money which, because of the pandemic, might otherwise not have been spent this year.
“I do not underestimate the challenges we face but I also see opportunities. It is important we take this chance to reshape our economy in a way that works for everyone and promotes long-term growth, not just quick fixes.
“This £230 million delivers investment across Scotland and will boost the green recovery, speed up digitisation and bolster construction, supporting hundreds of jobs.
“The Return to Work package is part of a process to harness Scotland’s talent and resources and build a modern economy that is robust, fair and sustainable. But it is only a start. Larger programmes will follow and I will continue pressing the UK Government both for new financial powers and greater certainty over funding.
“These additional powers are now absolutely essential – without them Scotland will be planning for recovery with one hand tied behind our back.”
by Iain McIlwee | 18 Jun, 2020 | Main News Feed
In Scotland today the First Minister has confirmed a gradual introduction of Phase 2 of the National route map for easing COVID-19 restrictions, which means the Construction Sector can move to Phase 3 of the Construction Restart Model from Monday 22nd June.
Phase 3: Steady state operation (where physical distancing can be maintained)
In this phase, the site complement will have reached a steady state level and, depending upon the site parameters, evidence suggest that this could mean that only 30% to 40% of the original workforce are able to be accommodated, due to physical distancing criteria.
As in Phase 1, due to the shortage of medical style PPE supply, only work that can be carried out within physical distancing parameters or with physical barriers will be carried out. Progress throughout Phase 3 will be subject to monitoring and supervision by site management, with any data/evidence gathered (such as site Covid-19 related absences) being used to inform continual review of management practices and arrangements to ensure safe working and physical distancing.
In a subsequent briefing from The Minister for Local Government, Housing and Planning, Kevin Stewart, to members of the CICV Forum (attended by FIS CEO, Iain McIlwee), the Minister expressed his gratitude to the construction sector for their patience and support in providing evidence to support this transition. He emphasised that the plan was centred on small steps taken slowly and carefully – it does not mean a return to normal and that strict adherence to the 2m working rule is essential. He applauded the level of collaboration in the sector, which he recognised was unprecedented. The Minister also highlighted the opportunity to benefit from the £230 million Return to Work Package, launched this week, £78 million of which has been earmarked for construction. He concluded his update by emphasising the importance of the construction sector to the Scottish economy and to ensure that if any difficulties are occurring in the way Public Bodies are managing contracts and not meeting the requirements of CPN 4: Managing Disputes and Cashflow then this should be reported to officials.
Full details of the phased plan are available here.
It has also been confirmed that face coverings will become mandatory on public transport from Monday 22 June. Further details can be found here.
by Iain McIlwee | 17 Jun, 2020 | Main News Feed
Retaining Talent in Construction reveals an anticipated reduction of 9.9% in the construction workforce by September. In the longer term, 43% of respondents expect to make redundancies, with up to 20% of their workforce being affected. 6.7% of apprentices are likely to lose their jobs by September, and 60% of respondents are looking to take on fewer apprentices at the next intake.
The cross-industry ‘People Survey’ was carried out by Build UK on behalf of the Construction Leadership Council (CLC) at the start of June 2020 to provide a snapshot of how a reduced workload post coronavirus (COVID-19) may affect the construction workforce.
In the wake of recent cuts announced by Travis Perkins, the report reinforces the need to look to targeted support for construction businesses, stimulus for construction works and a supply chain focus on extending the benefit of pipeline through to all employers in the supply chain, through earlier engagement and better planning.
Speaking on the launch of the report FIS CEO, Iain McIlwee commented: “The numbers give us a feel for what the future could look like if key issues related to support for apprentices, encouragement to retain, incentives to build and better planning of the pipeline aren’t addressed. We talk about the new normal, but numbers like this are a stark reminder of how tough it will be for many if swift action is not taken to support the industry. Just to put it in to context, 20% of the construction workforce is around a quarter of a million people! We need to look to Government for stimulus, but better and earlier planning and procurement is in our hands – as well as improving confidence and preventing decisions based on short term survival, it will also lead to better quality and support much needed investment in automation, digital and off-site solutions”.
You can read the full report Retaining Talent in Construction here
