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News Release from: Federation of Master Builders (FMB) | Subject: FMB 'disappointed' by Budget
Edited by the Buildingtalk Editorial
Team on 24 March 2006
FMB 'disappointed' by Budget
The Federation of Master Builders says that small construction firms up and down the country will be disappointed with the Chancellor's tenth Budget.
The Federation of Master Builders says that small construction firms up and down the country will be disappointed with the Chancellor's tenth Budget Commenting on the Budget speech, FMB Director of External Affairs Andrew Large said, "Yet again, the Chancellor has ignored the strong case for a reduced rate of VAT for domestic building work"
This article was originally published on Buildingtalk on 27 Jun 2003 at 8.00am (UK)
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"In doing so he has passed up the chance to increase the supply of affordable homes and support the drive for better construction standards".
The 2006 Budget contained little to interest small builders across the UK.
For example, the marginal changes to Stamp Duty will make little impact on the affordability of homes to first time buyers.
However, the further support to home insulation works is a welcome support for the sustainability of the current housing stock.
One area that is of interest is the Chancellor's comment that more of the benefits of planning gain should be ploughed back into the local economy.
Commenting on this, Andrew Large added: "The Chancellor has admitted that the current system of Section 106 agreements is a flawed tax, rather than a means of supporting the consequences of development".
"The Government should take a step back from all debates about planning taxes, and work with the development industry to establish a sustainable system, rather than imposing a planning gain supplement that is doomed to fail".
The Federation of Master Builders set up an online petition at www.cutthevat.co.ukurging every homeowner to put pressure on Gordon Brown to meet the 31st March deadline, set by the European Union, to get approval to cut VAT on building work.
Last month the EU member states agreed to allow lower VAT rates on repair, maintenance and improvement work until 2010.
While several countries already benefit from these lower rates, UK homeowners still pay 17.5%.
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