Councillor asks government to repay VAT on flood damage

A councillor in Yorkshire has called on the government to repay or reinvest the money it has received in value added tax (VAT) receipts relating to flood damage repair efforts in the region.

Andrew Percy is set to put a motion to his fellow councillors in Hull and East Riding to ask the Treasury to return the money gained through relevant taxation, which local accountants estimate are considerably higher than those received from the government for flood repairs.

Close to 15,000 homes in what is England's largest county suffered damage as a result of last year's flooding and the costs associated with insurance-backed repairs have been estimated to be worth between £15,000 and £30,000 per property, the Yorkshire Post reports.

"The government should either return the money or ring-fence it for flood-preparedness," said Mr Percy.

"Otherwise it will probably end up going to the Olympics in London."

VAT is levied at the standard 17.5 per cent by the government whenever business transactions, usually involving the supply of goods and services, are carried out in the UK.

Value added tax information can be found here