Product category:
Building Trade Associations and Institutes
News Release from: Federation of Master Builders (FMB)
Edited by the Buildingtalk Editorial
Team on 11 April 2005
Cutting VAT and rounding up cowboy
builders
Cutting VAT and rounding up cowboy builders are top of the agenda in the Federation of Master Builders' (FMB) election manifesto.
are top of the agenda in the Federation of Master Builders' (FMB) election manifesto, published this week The FMB manifesto, 'Building Our Future' demands that the new government should cut the VAT on domestic building work to 5%, thereby reducing the unfair advantage VAT-dodging builders hold over reputable ones
This article was originally published on Buildingtalk on 27 Jun 2003 at 8.00am (UK)
Related stories
3 Main Challenges For New Construction Minister
The FMB welcomed the appointment of Nigel Griffiths as Construction Minister and highlighted three policy areas where rapid progress will be key.
FMB Survey Highlights Four Years Continued Growth
FMB Survey Highlights Four Years Of Continued Growth For Construction SMEs But Skills Shortage Continues To Hamper Further Growth
Launching the Manifesto, FMB Director General Ian Davis said: "Recent survey evidence suggests that over a third of homeowners would risk shoddy work to employ a VAT- dodging builder offering a cheaper quote, rather than hire a reputable builder who pays VAT.
This not only takes business from the good guys who pay their taxes, but ultimately everyone pays, with over half a billion pounds lost from the public purse in VAT revenue annually." The cut in VAT would also address the disparity between the 0% tax payable on building new properties and 17.5% on refurbishment work, which results in perfectly good homes being demolished and rebuilt rather than incur repair costs with 17.5% VAT added.
Only this year, the GBP 750,000 lottery-funded sports hall of a south London school was demolished, less than 10 years after being built, because retaining the hall would have made the reconstruction of the whole school liable for VAT at 17.5%.
The FMB suggests the UK should draw on the experience of its neighbours: In 2000 the French government cut VAT to 5.5% and promptly saw a dramatic rise in domestic refurbishment work, as well a reduction in the informal economy.
The FMB says these disparities could be addressed if construction took its rightful place at the core of Government policy.
According to Channel Four Property Ladder presenter Sarah Beeny; "This Manifesto is a challenge to all the UK's politicians and political parties to give construction the attention it so clearly deserves." The FMB manifesto can be downloaded from the FMB website.
• Federation of Master Builders (FMB): contact details and other news
• Email this article to a colleague
• Register for the free Buildingtalk email newsletter
• Buildingtalk Home Page
Search the Pro-Talk network of sites
