HUHNE CALLS FOR VAT CUT FOR BUILDING REPAIRS (Eastleigh Liberal Democrats)

Eastleigh Liberal Democrats <enquiries@eastleighlibdems.org.uk>

HUHNE CALLS FOR VAT CUT FOR BUILDING REPAIRS

March 9, 2009 11:00 AM

Eastleigh MP Chris Huhne has backed a cut in the rate of Value Added Tax on building repair and improvements as a way of boosting the building trade and bringing construction workers back into employment.

Mr Huhne has backed a Commons motion that calls for a reduction in VAT to five per cent on building repair and improvement work to existing buildings.

Mr Huhne said: "This reduction in VAT would benefit millions of UK home owners by getting rid of rogue builders, helping those who cannot afford vital repairs to their homes, and bringing empty homes back into use. Such a reduction would also make it easier for home owners to make energy efficient repairs and improvements to their properties.

"It is surely crazy that there is a big VAT rate on repairs, but no VAT on new buildings. The gap between the two makes no sense, as it is just as important to repair an old building as it is to build a new one," said Mr Huhne.

The full text of Early Day Motion 7, tabled by Bob Russell, Liberal Democrat MP for Colchester, is as follows:

That this House supports calls from the Federation of Master Builders for a reduction in the rate of value added tax (VAT) to five per cent. on building repair and improvement work to existing buildings; believes that reducing VAT on repairs and maintenance to existing buildings would benefit millions of UK home owners by getting rid of rogue builders, helping those who cannot afford vital repairs to their homes, bringing empty homes back into use, and protecting the countryside and UK heritage; considers that reducing VAT to five per cent. in this area would also make it easier for home owners to make energy efficient repairs and improvements to their properties, thus helping to make the UK's existing building stock greener and more energy efficient; and notes that, with buildings responsible for 40 per cent. of the UK's total carbon emissions, this measure would go some way in helping the Government to meet its target of a 60 per cent. reduction in UK carbon emissions by 2050.