Exeter MP warns construction training cuts could hit local firms and apprenticeships

Exeter MP Steve Race has warned that funding cuts to construction training could leave local firms in Exeter and the South West struggling to recruit skilled workers and apprentices.

Mr Race led an adjournment debate in the House of Commons on Wednesday evening after the CITB confirmed it will withdraw funding from all 55 local training groups across the UK, ending annual grants that many small firms rely on to access affordable courses.

Under the changes, annual support grants of £35,000 for each group will cease from 31 March 2026. Supporters of the existing system say this could force many groups to close.

Training groups have historically helped small and micro-businesses arrange specialist training, access apprenticeships and share costs through collective booking. 

In contrast to the 55 local training groups, the CITB board is moving to 33 larger employer networks, which it says are simpler and more efficient.

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In his Commons speech, Mr Race highlighted the potential consequences of the cuts, saying: “Local businesses have been clear: these changes are making training harder, slower, and more expensive. … We need more apprenticeships and more skilled construction workers, not fewer, and cutting this local support risks deepening the skills shortage.”

The Exeter MP noted that employer demand for CITB-related services has risen by 36 per cent in the five years since 2021, while levy income has not increased, according to figures cited by the Government. 

He also pointed to the central role played by training groups in supporting local workforce development.

The CITB says that, across the UK, employer networks have supported around 56,000 learners and 4,400 employers in 2025–26, compared with approximately 1,800 employers supported annually by the training groups under the old model.

The issue was first raised with Mr Race by Exeter carpenter Peter Lucas, chair of both the Devon Construction Training Group and the National Training Group Chairs Committee. 

Mr Lucas warned MPs that training groups connect employers with a broad spectrum of courses — “from training on how to use a dust mask properly to master’s degrees”.

Local firms have echoed these concerns. Matthew Cousins, who runs Apex Scaffolding in Exeter, told the MP that the withdrawal of upfront grants could reduce the number of apprentices companies can afford to train. 

With courses such as scaffold training costing at least £1,500 plus wages and downtime, firms say the loss of pre-payment grants could affect skills pipelines.

Mr Race also highlighted feedback from local firms reporting difficulties in recruiting and retaining workers, with an ageing workforce and challenges in attracting young people to trade apprenticeships.

In Parliament, the MP acknowledged investment announced last year by the Government — including a £625 million construction support package intended to address skills shortages — but questioned whether the loss of local training groups would undermine these efforts.

Responding to the Government, DWP Minister Sir Stephen Timms said the CITB is reshaping its approach so that funding is “as tightly focused as possible on the industry’s core priorities”, with the aim of better supporting employers through the newer employer network model. 

He reiterated that the employer network model is designed to be more responsive, with no additional cost to member firms.

Sir Stephen said the CITB’s network approach has seen 87 per cent of participating employers classify themselves as micro, small or medium-sized organisations, and 81 per cent report satisfaction with the support received.

Sir Stephen also outlined wider government skills investment, including:

• £100 million for expanded construction skills bootcamps
• £90 million for courses for 16–18-year-olds
• £75 million for courses for those aged over 19
• £98 million to support industry placements
• £140 million in CITB/NHBC funding for up to 8,000 more apprenticeship and job starts by 2029

Despite those figures, Mr Race expressed concern about the impact on small and medium-sized enterprises (SMEs), saying local training groups have provided “local, low-cost training options, and with a paid officer who holds a wealth of local knowledge and experience”.

He said the cuts have left many SME employers feeling “largely ignored and let down by the CITB”.

Mr Race also welcomed the chance to meet Tim Balcon, chief executive of the CITB, to discuss the changes further and urged Ministers to review the impact on local firms and apprenticeships.

The MP told Parliament that construction skills are critical to Exeter’s economy and its ambitions for growth, and he highlighted the importance of local partnerships that connect apprentices, employers and training providers.