Industry coalition calls for a cut in VAT

Broad coalition of organisations has been formed calling on the Government to cut VAT from 17.5 per cent to five per cent for all building repair and maintenance work.

A broad coalition of organisations including the Federation of Master Builders (FMB), the Royal Institution of Chartered Surveyors (RICS), the Empty Homes Agency, the Bathroom Manufacturers Association and the National Home Improvement Council (NHIC), has been formed calling on the Government to cut VAT from 17.5 per cent to five per cent for all building repair and maintenance work.

The 'Cut the VAT' Coalition is calling for a reduction in VAT to help the Government achieve its target of cutting carbon emissions by 60 per cent by 2050; to help eliminate cowboy builders; and to tackle fuel poverty at a time when four million households cannot afford to heat their homes.

Richard Hyslop, Coalition Coordinator said, "I am delighted that so many organisations have decided to join together to lobby on the social, economic and environmental benefits of cutting VAT on building repair and maintenance work".

"Our efforts to date have already attracted support from a cross party group of politicians".

Yvonne Orgill, Chief Executive of the Bathroom Manufacturers Association and coalition member continued, "The Bathroom Manufacturers Association (BMA) representing 87 per cent of manufacturers of bathroom products trading in the UK fully supports the 'Cut the VAT' campaign to reduce VAT on materials, repair and maintenance to five per cent".

"It is vital that collectively we encourage householders to ensure their homes are fit for purpose and as energy and water efficient as possible".

"We need to make it easy for them to do and offer incentives".

"Reducing VAT is certainly the best incentive possible as other countries that employ this practice have proven and it is one way for Government to reach its aim of cutting carbon emissions by 60 per cent by 2050".

"A win-win solution".

Henry Oliver, Policy Adviser at the Empty Homes Agency and coalition member concluded, "The 17.5 per cent VAT rate is an unacceptable brake on the regeneration and re-use of vacant and under-used buildings".

"It favours new build over re-use, and therefore greater use of finite resources like greenfield land and minerals and higher CO2 emissions".

"It actively encourages neglect and decay".

"Bringing empty buildings back into beneficial use, in both town and country, is an essential part of sustainable development and improving people's quality of life".

"The Government needs to work a lot harder to join up its housing, regeneration, environmental and fiscal policies".

"Cutting VAT would be a excellent start.

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