While the organisation said it remained committed to paying ВЈ1 in grant for every ВЈ1 received in levy, but last year grants claimed amounted to ВЈ176m вЂ“ some ВЈ20m more than planned - which is unsustainable. New forecasts have also indicated Levy income will fall significantly more than expected in 2010 and will not recover to current levels until at least 2014.
In addition to cutting grants, the CITB is reducing the Supplementary payments (made to firms which pay the Levy on or before the due date) from 20% to 10%. This follows an earlier cut from 25% when grants for the Health & Safety Test, Investors in People and OSAT profiling were also removed. ADVERTISEMENT
BAMвЂ™s Chris Jones who chairs the Grants Scheme Working Party said: вЂњIn an ideal world, we wouldnвЂ™t reduce grant rates, but the recession is forcing businesses to make tough decisions and unfortunately, we are no different. This has been a very tough decision вЂ“ regrettable but essential in the current climate.вЂќ