The Construction Industry Training Board (CITB) has opened a formal consultation over proposals which will see 110 jobs lost.
After the organisation suspended levy collections earlier this year and announced next year’s payments would be halved, the CITB says it will experience a reduction of £241.1m in levy income over three years – a fall of more than a third.
The levy cuts form part of the CITB’s Skills Stability Plan 2020-21, which aims to protect apprenticeships and provide direct funding to employers to adopt new ways of working in the wake of covid-19.
Earlier this month, the CITB announced a raft of pay and bonus freeze measures in an attempt to save costs, but it has now taken the decision to start a formal redundancy consultation process.
CITB says that its proposals would reduce the payroll by 17%, saving £4.5m annually.
It says the cuts will enable it to focus its expenditure on directly supporting construction employers with their key skills, training and apprenticeships needs.
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.
“It is deeply distressing to have to propose losing so many valued and committed colleagues. Everyone in the CITB team has really impressed me with their incredible efforts in helping the industry adapt to our changed situation and in delivering outstanding work to our customers.
“I would much rather not be in this position, but our duty is to support and be accountable to the construction industry and that is where we must focus.”
