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£32.7m may be lost over the next 4 years by CITB College | BUILDING MAGAZINE

£32.7m may be lost over the next 4 years by CITB College

Based on a decision to stay in the training business, the Construction Industry Training Board (CITB) has revised its four year plan.

The new CITB plan shows that the two training centres being retained in Glasgow and Norfolk will cost £65.6m to run over the next four years and bring in only £32.4m of income.

This means the organisation will lose £32.7m over four years, on a fully absorbed overhead basis.

The CITB business plan for April 2021 to March 2025 was first published last September. That was, however, based on the premise that the National Construction Colleges at Bircham Newton in Norfolk and Inchinnan in Glasgow were being sold. No buyer could be found however and so the CITB is to keep ownership to ensure the provision of key training, notably scaffolding and plant operations, remains available to the industry.

The U-turn on providing direct training meant that the business plan had to be revisited. Further headline changes include a 14% increase in overall investment / expenditure compared with the business plan of six months ago. Total investment / expenditure for 2021 – 2025 is budgeted to be £895m (compared to £783m in the September 2020 plan).

The new business plan also revises the levy collection cost from 4.2% of total levy collected to 5%. The cost of levy collection as a percentage has gone up because it is largely a fixed cost, but the levy has gone down.

Sarah Beale, CITB chief executive said: “This business plan is based on listening to the industry and investing in what it has told us is important to it”. As promised, we’re targeting levy at fewer initiatives to ensure industry funds work hard and tackle priority issues. The plan strikes the right balance between employers’ current needs and future skills challenges.

“We will continue to work in partnership with industry to help attract talent and make it easier for new entrants to join, while giving employers the right support and access to training to upskill their people and retain vital skills. This work will put construction in a strong position to grow, improve productivity and become an inclusive, even more rewarding sector in which to develop a career”.