The legal action was taken against the Department of Business, Innovation and Skills (BIS), with CITB named as an interested party, by payroll company Hudsons Contract Services Ltd.

It looked at aspects of the CITB levy and a simplification of the scheme carried out in 2015 following consultation with industry and levy payers.

The case was heard on 1st and 2nd March at the Royal Courts of Justice in London and judgment was given on 18 April, with the judge upholding the current CITB levy order and the levy simplification process.

The judge, ruling in favour of BIS and CITB, dismissed all of the claims by Hudsons, and ordered the company pay CITB’s legal costs.

Steve Radley, Director of Policy at CITB, said: “This outcome is good news for the construction industry. It confirms that the 2015 CITB Levy Order and levy simplification are legal. We worked with industry for two years to make the levy simpler and fairer, and deliver more for construction firms. We are pleased that the benefits of these changes will be felt right across our industry, as planned.

“We can now deliver on our commitment to return a greater share of levy funding to employers and make it work better for them.”

Hudson said it is determined to carry on their campaign for change to the “destructive” system.

A Hudson statement said: “The CITB and the levy system need urgent reform.

“These proceedings have shown just how wide-ranging and unaccountable the CITB’s powers are.

“The levy is intended to fund training, yet the CITB admits that there is no requirement that they actually spend a single penny on training.

“If they choose, they can use all the money to cover their board’s expenses.

“SMEs who are vital to our economic growth are getting short-changed, and the country is failing to train as many young workers as it could.

“This is quangoism at its most pernicious and destructive.”