MP calls for cut in VAT to boost construction

Date: 29th October 2008

A major cut in VAT paid on home repairs would substantially strengthen the building industry, according to one backbencher.

The Plaid Cymru member of parliament, Hywel Williams, believes that a sharp cut to the 17.5 per cent taxation would inject activity into the Welsh construction sector, which - according to Wales Online - employs 80,000 people.

Mr Williams, MP for Caernarfon, said: "VAT at 17.5 per cent is a huge burden on hard-working families wanting to repair their houses."

While providing help to those who already own a home, Mr Williams also argues that it would give aid to those struggling to secure a property.

"For many young people renovating a run-down house is the only way of getting on the housing ladder," he added.

Mr Williams concluded that cutting the taxation would increase revenues for the government, as less big firms would be inclined to avoid it.

For help and advice on VAT and its implications, visiting an accountant is strongly recommended.