CITB-ConstructionSkills is drafting survival plans after a leaked government list revealed that the industry training body might be privatised, writes David Matthews.
There are fears that privatisation would mean that the statutory training levy that funds the board and its training grants would become voluntary.
A senior CITB source said: “The leaked document came as a surprise, but such news is not a shock as we’ve seen the way the wind has been blowing with the new government. The timing of the leak was actually good as there have been internal discussions looking at the options going forward.
“These are thought to include a management buyout by some board members. Brian Berry, external affairs director at the Federation of Master Builders, which sits on the board that advises the CITB on the levy, described this as “feasible”.
If the levy was voluntary, the citb wouldn’t collect as much money
Brian Berry, fmb
Another senior contracting source suggested an acquisition by a private company could happen, pointing to firms such as Capita and Mouchel that have large back-office capabilities.
In a list leaked to The Daily Telegraph, ConstructionSkills was one of four bodies to be privatised, alongside 177 others that would be abolished.
Last year the organisation collected £185.7m, and paid out £169.4m in grants. There are fears privatisation would spell the end of the legal levy and cut funds available for training.
Berry said: “We are concerned for what this could mean for the future of training and in particular apprenticeships. If it was voluntary, they wouldn’t collect as much money.
“David Edwards, chief executive of the Engineering Construction Industry Training Board, which also receives a levy and faces privatisation, said the body would be “completely different” with a non-mandatory levy. “I can’t see an easy way of making it work,” he said.
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