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 Builders’ last call to save homes and lives

 

Tuesday, March 07, 2006


It reads like a comedy script, but it’s reality. The government has just a few days left of a unique opportunity to rid the country of cowboy builders, bring over half a million empty homes back into use, protect the countryside, stop the destruction of decent existing buildings and help people living in substandard housing.

It would take a pen stroke, but the government is doing nothing about it when other EU countries have acted already.

Now, the Federation of Master Builders has launched an online petition in its bid to get Gordon Brown to meet the 31st March EU deadline to cut the VAT on building repair and improvement from 17.5% to 5%.

Last month the 25 EU member states agreed to allow lower VAT rates on repair, maintenance and improvement work until 2010. While several countries already benefit from these lower rates, the UK has yet to introduce them.

If Gordon Brown doesn't act before 31 March, he will lose the right to do so, says the FMB, which has set up its online petition to encourage the UK building trade and the public to put pressure on the Chancellor.

Cutting VAT would not only benefit millions of UK homeowners by helping to get rid of cowboy builders, but would also help those who cannot afford vital repairs to their homes and would also help bring England's 700,000 empty homes back into use.

Currently the government is effectively subsidising cowboys by charging VAT at 17.5% on domestic work carried out by honest businesses. This is a cost that they have to pass on to the customer. By signing this petition you can increase the pressure on Gordon Brown to support TrustMark by reducing the VAT rate and make it cheaper to get the job done properly by someone who knows what they are doing.

The difference between having to pay 17.5% VAT on building repair work and not having to pay any VAT on new buildings inevitably leads to decisions which can only be justified by reasons of tax cost. For example, in Lewisham, south London, a school sports hall less than 10 years old, built with Lottery funding and in need of renovation, was knocked down to build a new academy specialising in sports, because it was cheaper to do this than keep the old one and pay the subsequent £4 million tax bill associated with the renovation!

The FMB's petition has already been supported by the Empty Homes Agency, whose chief executive Jonathan Ellis said: "We are concerned that the high rate of VAT on refurbishment work will continue to reduce the number of homes we are able to bring back into use to meet the housing needs of the UK. We therefore fully support the FMB's move to put pressure on the Chancellor."

Ian Davis, director general of the FMB, said: "When the other European nations decided to enjoy the full benefits and sign up, the UK government said the Isle of Man could have a reduced rate of VAT but the rest of the UK could not. Why should we miss out again?"

"We have until 31st March to tell Gordon Brown what it is we want him to do for UK homeowners and the construction industry. If we do not, we will literally pay the price for years to come."

The FMB petition is at www.cutthevat.co.uk

 
 
     
     
 

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