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Construction Body Rejects Merger of Training Boards, Citing SME Concerns

A prominent construction trade body has opposed government plans to merge two key industry training boards, warning it could marginalise smaller firms. The Federation of Master Builders argues the proposal lacks clear evidence for improving skills outcomes for small businesses.

  • FMB opposes merging Construction Industry Training Board (CITB) with Engineering Construction Industry Training Board (ECITB).
  • Concerns raised over diluted influence and overlooked needs of small and micro construction businesses.
  • Trade body states no clear evidence the merger would improve skills outcomes for SMEs.
  • Calls for greater SME representation, transparency in levy spending, and stronger governance if merger proceeds.

A leading trade organisation representing builders across the UK has voiced strong opposition to government proposals to merge two significant industry training bodies. The Federation of Master Builders (FMB) has warned that combining the Construction Industry Training Board (CITB) with the Engineering Construction Industry Training Board (ECITB) could diminish the influence of smaller construction firms over vital training initiatives.

Responding to a consultation from the Department for Work and Pensions on the future structure of these boards, the FMB stated that there is insufficient evidence to suggest a merged entity would deliver improved skills outcomes, particularly for the small and micro businesses that constitute the vast majority of the construction sector. The organisation fears that a larger, more centralised training board risks failing to adequately address the specific needs of these smaller enterprises.

Brian Berry, Chief Executive of the FMB, articulated the industry's scepticism, commenting that small building companies are not convinced the proposed merger is in their best interest or beneficial for broader construction skills development. He highlighted concerns that the voice of smaller firms could be further diluted within a larger organisation, especially with the potential introduction of large multinational engineering companies into the governance structure.

While rejecting the merger in its current form, the FMB acknowledged the ongoing need for reform within the existing training system. Should the government decide to press ahead with the plans, the trade body is calling for several critical safeguards. These include ensuring greater representation for smaller firms in decision-making processes, enhancing transparency regarding how training levy funds are spent, and implementing robust governance arrangements to ensure accountability.

Mr Berry further emphasised that if the Department for Work and Pensions is determined to proceed, any new organisation must be structured to reflect the reality of the construction sector. This entails formally including representative bodies in governance, significantly increasing transparency over decision-making and levy expenditure, and fostering a culture that actively engages with and listens to the industry. Without these fundamental changes, he warned, small builders risk contributing financially without receiving the necessary support in return.

Why this matters: This debate impacts the future of skills training and development within the UK's vital construction and engineering sectors, directly affecting thousands of businesses and apprentices. It highlights ongoing concerns about how government policy supports the diverse needs of small and large enterprises.

What this means for you: What this means for you: If you work in construction or engineering, or run a related business, this decision will influence the availability and quality of industry training. It could affect career development opportunities and the skills pipeline for employers.

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