The Labour Party’s announcement on Monday that it supports a VAT cut to 5% on domestic Repair Maintenance and Improvement (RM&I) works is welcome news to the building industry, says the Federation of Master Builders.
Richard Diment, FMB Director General, said: “A targeted cut in VAT for home improvement works makes good economic sense as the total stimulus effects of such a cut would be more than double any net loss to the Treasury as well as helping to create tens of thousands of new jobs.
He continued: “This policy makes sense on every level. It supports economic policy by creating jobs and generating growth; it supports environmental objectives by helping to bring derelict homes back into use thus taking pressure off the green belt land to provide new housing; and it tackles rogue traders and tax dodgers by reducing their competitive advantage over legitimate businesses.
“Once again we, and our supporters across the ‘Cut the VAT Coalition’, call on the Government to adopt this policy.”