Construction Industry Training Board: Funding

Rebecca Smith Excerpts

Wednesday 4th February 2026 Commons Chamber

[Steve Race]

I thank the hon. Member for his intervention, and I hope the Minister will cover these points at the end. We are grappling with rising costs for construction firms, and we need to support them, as I hope we will, with CITB, in the future.

[Rebecca Smith (South West Devon) (Con)]

Does the hon. Member agree that losing the skills and expertise of local training groups, such as the Plymouth Construction Training Group, which was formed in 1977 and has been funded by the CITB, and instead having centralised delivery from CITB in London, would be a retrograde step that risks us losing local construction skills?

[Steve Race]

I thank the Member for her intervention. I fear that she might be right, and I will come on to some of those issues and the feedback that I have received from local training groups across the country, and from small firms.

Local training groups have been vital in supporting micro and small employers to form local networks, and helping them to forge closer ties. They provide those businesses with local, low-cost training options, and with a paid officer who holds a wealth of local knowledge and experience.

However, the national CITB has chosen to de-fund all 55 training groups across the country, close the network down and re-allocate funding elsewhere. This was brought to my attention by Mr Peter Lucas, a constituent who runs a carpentry business, and who has been the chair of the national training group chairs committee. He impressed upon me the importance of the good localised work that training boards have been doing. He told me that training groups connect employers with a really broad spectrum of training for the sector—everything from training on how to use a dust mask properly to master’s degrees.

Training groups work with schools and colleges to promote construction, offer talks and information about the sector, and signpost people to the appropriate apprenticeships programmes. They also save the CITB vast amounts of money on training courses, as training groups source them more cheaply than is done at national level. They meet up and exchange ideas and best practice across the whole of Britain, with everyone gaining more knowledge. Each training group has, until this year, been given £35,000 from CITB to fund their group training officer—money that comes from the levy that members of the training group have paid to the CITB. Without the grant, the training groups will likely close, and with the loss of the groups, vital local networks and local knowledge will be lost. Certainly, the local training group for Devon has been a success and is well-liked. Indeed, I applied for this debate not just because of the compelling case put to me by Mr Lucas, but also because of the outcry from local firms when I posted about my meeting on social media.

Matthew Cousins, who runs Apex Scaffolding in my constituency, an active member of the local south-west CITB steering group, told me that the company faces ongoing challenges in recruiting and retaining scaffolders. With an ageing workforce, and given the increasing difficulty of attracting young people into this profession, it was very surprised that CITB has chosen to cease funding the training groups, especially considering the levy costs that the employers are required to pay.

--- Later in debate ---

[The Minister for Social Security and Disability (Sir Stephen Timms)]

Let me start by congratulating my hon. Friend the Member for Exeter (Steve Race) on securing this debate and welcoming the interest in it. I also welcome the opportunity for the House to consider the reforms that the Construction Industry Training Board is making with the aim of strengthening the skills pipeline for the construction sector. As my hon. Friend rightly said, we need a skilled construction workforce in order to deliver the Government’s plan for change and our industrial strategy. That is the reason the Government are making a big investment in construction skills. We need, at scale over the next few years, a large volume of products from the construction industry. At the same time, as he said, we want to realise the good opportunity that the sector presents to provide many people with great careers, not least young people who are not on track for a rewarding career at the moment. There are a lot of possibilities in this sector.

Last March, the Government announced a £625 million construction support package to address the current acute shortage of skilled workers in UK construction. That package includes: a £100 million expansion in skills bootcamps, offering flexible short-term pathways into the construction sector for new entrants and for those looking to upskill; £90 million in additional funding for construction courses for 16 to 18-year-olds; a further £75 million for courses for those aged over 19 and either not in work or earning less than £25,750 a year; another £38 million for foundation apprenticeships; and £98 million to support industry placements for level 2 and level 3 learners undertaking an eligible construction qualification.

There is, in addition, a £140 million investment funded by the CITB and the National House Building Council, which could make available 8,000 more construction apprenticeship and job starts by 2029. A different £140 million has been committed by the Government to pilot, with mayoral strategic authorities, new approaches to connecting young people aged 16 to 24—particularly those who are not in education, employment or training—to local apprenticeships. That is not specific to construction, but we expect construction to be one of its major beneficiaries.

[Rebecca Smith]

I welcome the funding that the Minister has just outlined. Reference has been made to mayoral strategic authorities, but vast parts of the country do not have one yet and are unlikely to have one for some time. Indeed, my constituency and that of the hon. Member for Exeter (Steve Race) are in one of those regions. I am interested in how the funding will be delivered to where it is really needed in those smaller communities. At the moment, we have 124 training groups doing that, and ultimately they are best placed to know the workforce in their local areas. In those smaller communities that have not yet seen that devolution, how can we ensure that we do not see those skills just drop out of the bottom of the sector?

[Sir Stephen Timms]

I think on this topic there will be less difference across the Dispatch Boxes than was the case with the topic we debated yesterday. The pilots with the mayoral strategic authorities will try out new approaches, and the idea is that the successful approaches can be rolled out wherever appropriate, not just in areas with mayoral strategic authorities. I will come to the point about the training groups in a moment.

Similarly, we expect the construction sector to benefit from the expansion of the youth guarantee, backed by £820 million of investment over the next three years to reach almost 900,000 young people and support them to earn and learn. A great deal of investment is going into this area, and I agree with my hon. Friend the Member for Exeter that it is vital that we make the most of that for creating opportunities in local areas in every part of the country, including the south-west.

The CITB plays a central role in developing construction workforce capability and investing in skills training across England, Scotland and Wales. As we have been reminded, there is a separate arrangement in Northern Ireland. CITB is a registered charity and a non-departmental public body established in statute in 1964—apparently in July. It is sponsored now—following the transfer of responsibility for adult skills policy from the Department for Education—by the Department for Work and Pensions, with the purpose of improving training for people over school age who are working in the construction industry.

The Government set the strategic framework for the board. The board remains accountable to Parliament, but it operates at arm’s length, maintaining operational independence over how it meets industry needs. Its chair is Sir Peter Lauener, a distinguished former civil servant, but its board comprises by statute mainly representatives of construction employers. It is funded not by taxpayers but, as my hon. Friend said, through a levy on registered construction employers based on their payroll size.