The Federation of Small Businesses has joined the call for the rate of VAT on construction work to be cut to 5%.
The small trader representative body says that this should take some of the pressure off small businesses.
Mike Learmond, the FSB’s regional organiser for North Wales, said: “The cut would be a really direct and positive move to stimulate the construction sector, helping work on many smallish projects such as house extensions and new kitchens.
The call for the VAT cut is one of the key points in the FSB’s general election 2010 campaign manifesto. It also calls for a moratorium on employment regulation so as not to increase the load on small businesses, a national insurance rebate for new jobs in small firms, alternative routes to finance for small traders.