The Scottish Government is supporting the Federation of Master Builders' (FMB) call for the UK Government to reduce VAT to 5 per cent for property repair work to support the construction industry and keep the Scottish economy moving.

Deputy First Minister, Nicola Sturgeon has called on Alistair Darling MP, Chancellor of the Exchequer, in advance of his Budget on 22 April to take 'radical steps' and deliver new housing investment through the 2009 Budget.


Sturgeon warns that it is no time to "tinker" at the edges and that immediate action is needed in the shape of at least a £500m injection and changes to VAT to provide the affordable houses that people in Scotland need and to breathe new life into Scotland's hard-pressed construction industry.

Grahame Barn, Director of FMB Scotland said: "There is now a universal chorus of cross party support across the UK wanting the Government to cut VAT on repairs and maintenance work to help the construction industry.

"With the threat of more than 300,000 job losses the UK Government should be listening and take heed in the forthcoming Budget. Any failure to do so will have a detrimental impact on construction jobs and will mark a wasted opportunity to do something positive for Scottish builders."

(GK/JM)