Builders Merchants Journal – BMJ Publishing to Builders Merchants and the UK merchanting industry for more than 95 years
Andrew Stunell MP has written to the Chancellor of the Exchequer to call for a reduction in VAT to 5% on building repair and improvement work to be introduced in Wednesday’s Budget.
Stunnel, the Liberal Democrat member for Hazel Grove, says that construction industry has been particularly hard hit in the recession, with over 60,000 people in the sector having lost their jobs. This includes many in his own area of Stockport.
“This reduction in VAT would benefit millions of UK home owners by getting rid of rogue builders, helping those who cannot afford vital repairs to their homes, and bringing empty homes back into use. Such a reduction would also make it easier for home owners to make energy efficient repairs and improvements to their properties.
“It’s just crazy that there is a big VAT rate on repairs, but no VAT on new buildings. The gap between the two makes no sense, as it is just as important to repair an old building as it is to build a new one.
“The government has already wasted billions on a VAT cut that has made no difference, and should instead invest money in cutting VAT in an area that would create jobs, and help lead the construction industry on the road to recovery.”
