Industry says cut the VAT
The construction industry has called on the Government to cut VAT on home improvement works to 5% to boost jobs and stimulate the economy.
According to independent research conducted on behalf of more than 60 organisations including ECA, FMB and RICS, cutting VAT to 5% for the period 2015 to 2020 would have generated an economic stimulus of £15.1bn and 95,480 extra jobs.
Brian Berry, chief executive of the FMB, said: “The Government must prioritise measures that create jobs in every community, and that will tackle climate change. Cutting VAT is an oven-ready fiscal policy that will help to generate billions in economic stimulus and tens of thousands of jobs across the UK.
“Local builders train almost three quarters (71%) of the industry’s apprentices, so supporting the repair, maintenance and improvement sector will help industry to train, train, train as well as build, build, build. Cutting VAT will also help us decarbonise our homes, as we know households prefer to do this as part of larger home improvement works.”