I will endeavour to answer those four questions. As the shadow Minister has suggested, if there are any questions I am unable to answer, he is welcome to write to me, or I can write to him.
This mission-led Government are kick-starting economic growth, delivering on net zero commitments and breaking down barriers to opportunity. The Government have committed to building 1.5 million homes in England during this Parliament for the growth mission, delivering the biggest boost to social and affordable housing in a generation.
In 2023, as the shadow Minister is aware, Mark Farmer was commissioned to carry out an independent review of the two remaining industry training boards, the engineering construction ITB and the construction ITB. That was part of the standard cycle of Cabinet Office reviews of public bodies. As I have said, the review’s publication was delayed until 30 January 2025 due to a lengthy fact-checking process and the need to consider our response in the light of our missions following the general election. A headline finding was that the construction and engineering construction sectors face common strategic workforce challenges. The review recommended merging the ITBs to focus on improving workforce resilience across both sectors.
As we press ahead with delivering 1.5 million homes, now would be the wrong time to distract the construction sector by consulting on changes to legislation. What the sector needs now is continued investment in skills and training to create a larger and more effective workforce. We are driving that through increased voluntary collaboration between ITBs, initially focused on the commonality of purpose in infrastructure, as demonstrated by the recent signing of the skills charter by both ITBs and Sizewell C. There is no immediate plan to legislate to merge the ITBs.
The CITB levy is specific to the construction industry. It has a wider remit on the types of training that can be funded, such as providing grants to deliver training to existing staff to meet any construction-related training needs, as well as setting sector occupational standards to assure the quality of qualifications.
The CITB has also used its levy funding to address barriers specific to the construction industry, including the creation of a new entrant support team. This mainly supports smaller businesses to identify appropriate training, and it provides mentoring and other support for learners. In less than a year, NEST has supported 2,506 distinct employers and 5,230 apprentices. Of those apprentices, 96.6% remain on their training or have achieved their apprenticeship, which is an excellent result. The ITBs are working with the Department for Education as the growth and skills offer is further defined, to ensure that ITB levy-funded training complements that provision. As I have already said, there are no immediate plans to legislate to merge the ITBs.
The CITB’s running costs are currently at 15% and include the cost of administering the levy, grants and funding schemes for employers. Its underlying corporate costs—including human resources, finance and other back office services—are at 10%. The 2023 ITB review recommended that there should be more transparency on the ITBs’ funding costs, that their corporate service costs should be benchmarked against suitable comparators, and that both ITBs should look to make 5% efficiency savings. In 2023-24, the CITB made efficiency savings of 11.3%. The Government agree with those recommendations, and a steering group will be convened to monitor their implementation.
The Department for Education’s response to the ITB review is on the Government website. We have accepted the majority of the review’s recommendations. Where the Department has partially accepted the recommendations, or accepted them in principle, it is because the recommendations are complex and are likely to require additional scoping of form and function. In some cases, consultation with the industry is likely to be required.
We must see a step change in construction skills delivery to achieve many of the Government’s infrastructure and housing ambitions. Over the next 12 months, we will work with ITBs and other Government Departments through a cross-departmental steering group to scope the different ways of implementing the more complex recommendations. All that work will need to be carried out before final policy decisions can be made on whether to fully accept and implement the recommendations. I am happy to write to the shadow Minister on his other financial points.
This draft order is designed to enable the CITB to concentrate on its job at hand, which is turning the dial on the provision of a growing and skilled construction workforce, alongside everything else this Government and industry will also bring to the table. The CITB levy ensures that the construction industry invests in training and skills. It provides businesses of all sizes with access to ringfenced funding estimated at almost £224 million over the next financial year. Hon. Members will know that we cannot afford to turn down such investment, given our ambition for growth and our ambition to build 1.5 million homes during this Parliament.