VAT cut is a “no-brainer” Osborne told

Grant Prior 12 years ago
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Small and medium sized contractors are describing VAT cuts to repair and refurbishment work as a “no-brainer” in an appeal to the Chancellor on the eve of his budget.

The Federation of Master Builders believes George Osborne must include a targeted cut in VAT if the Government is serious about stimulating the constuction sector and boosting the green economy 

Brian Berry, Director of External Affairs at the federation said: “The case for a targeted cut is compelling.

“Independent research shows that a targeted cut in VAT for all domestic RM&I works would create a stimulus effect of £1.4bn and create more than 55,000 jobs this year alone.

“The comparatively small net loss to the treasury to achieve this effectively represents a 460% return on investment. It is a no brainer

“This cut is also essential if the Government is to stand any chance of meeting is target of improving the environmental performance of the UK’s housing stock.

“The Government has said it wants to be the greenest in history and is committed to upgrading 26 million homes over the next 20 years.

“To do this the work will need to be completed at the rate of 1.3m homes per annum; this is around 25,000 per week or nearly 3,600 per day.

“The construction sector is well placed to deliver growth, jobs and the green economy but its crucial SME sector has just entered a fourth year of recession and will lose a further 7,500 jobs as a result of January’s VAT increase alone.

“A targeted VAT cut is the only way that the country can benefit from what construction has to offer.”

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