Building industry calls for VAT cut

A construction industry group is putting pressure on the government to reduce the rate of value added tax (VAT) on building repair and maintenance work.

The Federation of Master Builders (FMB) has joined with other industry organisations such as the Royal Institution of Chartered Surveyors and the Empty Homes Agency to lobby for the cut, which would see VAT for work on existing buildings fall from 17.5 per cent to five per cent.

According to the Cut the VAT Coalition, this reduction could help the government to lower the nation's carbon emissions by encouraging homeowners to make their properties more energy-efficient.

"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," said coalition coordinator Richard Hyslop.

Richard Younger-Ross MP voiced his support for the FMB's campaign this week, stating that the VAT cut would also help to eliminate rogue traders and bring empty homes back onto the market.