BPF joins VAT coalition

Date: 22nd March 2010

The British Property Federation (BPF) has joined a coalition calling for a cut in the rate of VAT charged on home improvements.

According to the Cut the VAT Coalition, reducing the rate from 17.5 per cent to five per cent would help to create jobs and improve housing standards in the UK.

The BPF also claimed that the reduction would get rid of "cowboy" builders and assist in upgrading the UK's private rented sector.

Alan Collett, the organisation's residential chairman, said: "A reduced rate of VAT to five per cent on repairs, renovations and management fees would be of huge benefit to the private rented sector, levelling the playing field between those who use VAT and non-VAT registered traders and stimulating improvement in the sector's stock."

The BPF is now the 22nd organisation to join the coalition ahead of this week's Budget announcement.

According to the coalition, the wider benefits of the reduction include the creation of more than 50,000 jobs this year and contributing more than £17 billion to the economy by 2019.