An MP who is also a builders merchant is calling upon the government to cut VAT on housing maintenance and refurbishment to 5%.
Ochil & South Perthshire MP Gordon Banks is company secretary at Cartmore Building Supplies in Lochgelly, was speaking in the House of Commons after EU finance ministers voted to allow the cut.
Banks said: “I urge the Government to be bolder on VAT. They could reduce it to 5 per cent. on home extensions, repairs and maintenance. That would motivate home owners to invest, and provide real jobs in the industry. This was supported by UK MEPs of all major persuasions only last month. Individuals with private capital are simply not investing in the industry, and we need to change that.”
“A VAT cut in this industry will not only bring security of employment for some trades people, it will also benefit customers who will experience cheaper building materials and labour costs.”
His calls echo those of the Get Britain Building Campaign; a VAT rate of 5% is one of the key points in their 10-point manifesto, launched last month.
The campaign, organised by the BMF, FMB, British Precast and Modern Masonry Alliance, aims to force government to bring in a number of measures to avoid the loss of potentially hundreds of thousands of jobs in the construction industry.