If CITB wants to raise a Levy it has to consult with the construction industry. It has to gain the support of industry about the proposals for the next Levy Order.
CITB must show that it has this support every three years. This process is known as Consensus.
Once Consensus is achieved, a Levy Order may be made by the Secretary of State to authorise CITB to collect a Levy from employers so it can invest in the skills and training the industry needs.
How is Consensus achieved?
The Industrial Training legislation requires CITB to take "reasonable steps" to satisfy the Secretary of State that the Levy Proposals are necessary to encourage adequate training in the industry. The Industrial Training Levy (Reasonable Steps) Regulations 2008 set out what these "reasonable steps" are.
Prior to Consensus, CITB works with members of the industry to formulate the Levy Proposals after which CITB consults upon the Levy Proposals with "Prescribed Organisations" (previously referred to as Consensus Federations) and a sample of employers not represented by Prescribed Organisations ("unrepresented persons").
How is Consensus calculated?
CITB uses a set of Consensus Rules to calculate Consensus as follows:
- The most recently assessed Levy Return is used as the basis for the calculation.
- Only those employers considered likely to be liable to pay Levy under the Levy Proposals are in scope for calculation.
- Employers not 'positively' identified, including employers who are members of a Prescribed Organisation (i.e. previously known as Consensus Federations) or employers categorised as 'Don't know' and 'Unknown', will be included in the list of non-represented employers.
- Establishments listed on the Levy register shall be treated as part of their Levy parent registration.
- The views of employers who are members of two or more Prescribed Organisations will be split and their views and Levy value will be split equally between the Prescribed Organisations to which they belong.
- Where a Prescribed Organisation consists of two or more sub-organisations, the sub-organisation's members will be counted as part of the parent organisation. However, where a sub-organisation is a Prescribed Organisation in its own right, the members of that sub-organisation will be counted as part of the sub-organisation.