A Reformed CITB

It is clear from the evidence seen by this review that the challenge facing the CITB and its consequential struggle to deliver across a multitude of different fronts, is leading to a loss of industry confidence across matters such as training and attracting new entrants to the industry. This appears to be partly down to the terms of reference under which the CITB operates. In particular, they do not properly enable funding of innovation and technology which seems bizarre when technology and skills are such inter-related synergistic issues. Such matters are a legacy of the historical legislative mandate under which it operates. It also has faced continuous widespread calls for efficiency improvements and a more effective deployment of grant. The reality is that it appears the sheer scale (and increasing politicisation) of the task facing CITB, has meant that such that it has struggled to get on the front foot and robustly deliver good value in the parts of the industry where the multiplier effect can be maximised.

It is important to state that the principle of a levy is considered by this review to be a sound one. The issue is really how the industry's sole self-funding mechanism can be turned into a high efficiency brokerage solution backed by a fit for purpose implementation body that maximises return for every £ of levy charged to members.

As such, it is recommended that the opportunity is taken as part of the next triennial review process to shape and evolve a more relevant and better equipped implementation body. This body can then act as the delivery medium for policy decisions originating from the evolving leadership vehicle referenced above in Recommendation 1.

The desire for comprehensive and single point levy paying and grant distribution coverage across the whole industry would suggest that efforts should also be made to try and reconsolidate membership across current 'out of levy scope' trade body members. It is appreciated that this may not be easy, but it will at least focus efforts on the need to create an inclusive, accountable, high efficiency organisation that will maximise training and innovation outcomes across the entire industry and avoid the 'siloism' that currently exists.

The following principles should be incorporated into any review of CITB:

• A new focus on longer-term strategy explicitly linked to the needs of clients and government, as well as those of industry and linked to a new and integrated leadership agenda.

• A broader remit to support industry innovation and modernisation, with success judged by outcomes and the performance of the sector, rather than the achievement of consensus. The key parties represented should respect where financial support is best deployed to create more holistic, longer-term benefits.

• Greater digitisation and leaner overheads in operation, emulating high efficiency and digitally led large scale 'clearing house' platforms such as UCAS. This must minimise the cost of administration and unnecessary waste or diversion of resources.

• The ability to use its collection and distribution of funds strategically to encourage greater investment in skills and innovation. There should be broader criteria to determine contributions to CITB and, in turn, a broader range of activities funded by CITB.

• A drive to bring out of scope trade bodies back into a single umbrella levy and grant system and to leverage scale efficiencies in so doing.