Scottish Building 'wish list' for Chancellor

Scottish Building is renewing its appeal to Chancellor Gordon Brown to respond to their construction 'wish list' as he prepares his pre-budget statement.

Scotland's leading construction industry spokesbody, Scottish Building is renewing its appeal to Chancellor Gordon Brown to respond to their construction 'wish list' as he prepares his pre-budget statement.

Once more, the issue, which has been given top priority, is the growing call to reduce the level of VAT on domestic repairs and maintenance work to 5% in an effort to create a level playing field for bona fide contractors.

Scottish Building and its Member Associations, who represent some 700 contractors, have long since argued that a reduction in the VAT rate is the single most significant measure that could be introduced in an attempt to stamp out rogue traders from the construction industry.

This follows concerted pressure by the industry that the UK Government should follow the lead given by other EU Member states to reduce levels of VAT on building repairs and maintenance as a contribution towards initiatives against the activity of rogue traders.

The results from pilots elsewhere in Europe show that turnover and employment in the legitimate industry has been markedly increased without any significant decrease in the overall VAT generated in the sector.

There is no doubt that the advantages to be gained from a reduction in the level of VAT on domestic repairs and maintenance work would collectively benefit the construction industry, the British householder and the Treasury, as well as having a positive effect on employment and would remove the competitive advantage of the black economy builders.

Scottish Building believes it would certainly be a significant boost to the construction sector was the Chancellor to agree to the sensible and sustainable reductions which have been called for.

Scottish Building would also like to see the Government helping to improve the skills base within the industry and believe they can do so by demanding proof of skills and certification from construction workers before they commence work of any kind.

Competent operatives in our industry carry cards to recognise the level of skill they have.

CSCS cards are marked with the level of S/NVQ a craftsman has, but few tradesmen are asked to show these.

Scottish Building has called for a fully qualified workforce and for action by the Government to insist that companies working in the public sector should have a fully qualified and competent workforce.

Improving H and S performance and rewarding companies who have good track records of H and S will aid the process.

The Federation urges the Chancellor and his Parliament to show construction in the light it deserves and display the good career opportunities for people at all levels of ability.

The increase in registration of apprentices year on year - over 2,300 building craft apprentices were registered in Scotland during 2004 and the final number is expected to be exceeded this year - this needs to be sustained through Government support and publicity, which requires substantial investment - to this end the Federation appeals for such investment funding.

The Government should meet the costs that are involved in assessing and training individuals.

Colleges of Further Education in Scotland do not have the space to meet the expanded needs of the individual.

Scottish Building also welcomes the delay of the implementation of the reformed CIS.

However the industry desperately requires HMRC to provide clarification on the subject of employment status and labour only sub contractors.

The Federation believes that without this clarity many longstanding reputable building companies could face at best large financial penalties and at worst going to the wall because of their custom and practice with relation to labour only subcontractors.

The current level of investment in the industry is not living up to expectations either according to Scottish Building, which is making it difficult for the construction industry to restate its position and get rid of the bad image that has been associated with it for so long.

Further investment is required for the industry if it is to function at its best.

Scottish Building hope that the Chancellor will take on board some of their concerns and work with the industry to meet the targets and aspirations which all within the industry have.

Michael Levack, Chief Executive, Scottish Building.

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