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Get Britain Building campaign endorses Cut the VAT Report

Building coalitition campaign Get Britain Building is has thrown its weight behind a new report produced by the Cut the VAT Coalition.

Get Britain Building campaign endorses Cut the VAT Report

The report – The Opportunities and Costs of Cutting VAT: The effects of selected reductions in the rate of VAT on the labour element of housing repair, maintenance and improvement – identifies opportunities for the Government:

  • To create 55,000 new jobs in the first year of a VAT cut;

  • Free up £450m per annum for renovations on social housing;

  • Bring 19,000 social houses back into use p.a;

  • See sustainability improvements to 174,000 private domestic properties; and

  • Reduce housing carbon emissions by up to 337,000 tonnes.

    The report estimates that the cost of this to Government could be as little as £102m a year – equivalent to a quarter of the Car Scrappage Scheme; only twice the Boiler Scrappage Programme and a mere 0.01% of the resource so far committed to the bailing out the banks.

    GBB has been campaigning for a cut in VAT to 5% on domestic works that include an element of ‘consequential improvements’ which deliver sustainability benefits. Such an initiative would not only generate activity in the domestic RMI environment, it would serve to improve the property asset base of the UK and assist the Government in meeting its challenging 2020 and 2050 carbon reduction commitments.

  • About Fiona Russell-Horne

    Group Managing Editor across the BMJ portfolio.

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