VAT CUT TOPS NEW YEAR’S WISH-LIST FOR BUILDING FIRMS

A VAT cut for housing renovation and repair work is at the top of the New Year’s wish-list for most small and medium-sized construction companies.

A major survey has been conducted of members of the Federation of Master Builders (FMB), which is the largest trade association in the UK construction industry. It showed that 75% felt VAT was an issue that they wanted the Government to address. Building regulations, planning and finance were also listed as priority issues by over half the businesses surveyed.

Labour’s five point plan for economic recovery published last year included a reduction in VAT to 5% on home improvements, repairs and maintenance to help homeowners and small businesses. Brian Berry, Chief Executive of the FMB, said: “It comes as no surprise that construction SMEs want this targeted reduction in VAT. Most are still struggling with falling workloads and competition from the informal economy. This is about creating a level playing field and reducing the number of individuals and businesses that rely on avoiding VAT.

“It is also about boosting growth in the economy by making it easier for homeowners and landlords to commission the work they need doing on their properties. Independent research has shown that the Government will quickly make up the initial loss of tax revenue owing to the growth in demand for housing repair and maintenance work.”

Up until now the Messrs Cameron, Osborne and Clegg have been unmoved by the disastrous consequences of their counterproductive austerity programme. This Tory-Lib Dem Coalition has been an unmitigated disaster in its first two and half years. Sadly it looks like the next the next two and a half years will be even worse. I shudder to think what that will mean for millions of fellow Britons.


All progressives need to muster behind the Labour Party at the next General Election to bring an end to this nightmare. The stakes could not be higher.