Scotland
UK
Ireland
London
Cutting the rate of VAT payable on home building improvements to 5% should be the number one Government priority to support the construction sector - especially now as the industry is in recession.
In an earlier survey of industry bosses some weeks ago, more than 40% of firms responding to a Scottish Construction Monitor - a quarterly survey of the Scottish Building Federation's (SBF) membership of more than 700 individual construction firms - said a targeted VAT cut would be the single most effective measure Government could take to boost the industry at the current time.
Now, as the recession deepens and winter approaches, taking control over VAT rates from the UK Treasury is again a priority.
Back in July, the survey results suggested a large number of construction industry employers want the Scottish Government to apply further pressure at Westminster for the rate of VAT payable on home building improvements to be slashed to the minimum level allowed by EU law.
The practical effect of this measure would be to save consumers 15 pence in every pound they spend on having construction work done to repair, maintain or improve their home. Industry campaigners including SBF have consistently pointed out a range of other benefits the policy would deliver – including making homes greener and more energy efficient, supporting apprentices in the construction sector and driving 'cash-in-hand' rogue traders out of the industry by eroding their competitive advantage over legitimate VAT-registered building firms.
The new industry survey found improved bank lending to be the second most popular policy measure to support the industry, while increased public investment in house building emerged as third most popular.
Speaking at the time, SBF Chief Executive Michael Levack said: "Cutting VAT on home building improvements has been a long-standing campaign issue for the industry. This new survey demonstrates once again how strongly our members feel about the issue – and how much they believe it would benefit consumers and the industry if a targeted VAT cut were implemented."
(BMcC/GK)
