Joinery and builder sectors look for VAT cut from chancellor

The British Woodworking Federation (BWF) and the Federation of Master Builders (FMB) repeated the call in advance of chancellor George Osborne’s autumn statement on Thursday.

Similar appeals during the last five years have so far fallen on deaf ears at Westminster. Construction Products Association chief executive Diana Montgomery told the BWF’s annual Members’ Day earlier this year that Treasury officials were “nervous” about change and risk and they did not appear convinced that the estimated £2bn cost of cutting VAT would be retrieved through an expected boost in extension and improvement work.

But industry groups like the BWF are in no doubt that a cut would deliver real gains. The BWF’s letter to Mr Osborne sets out critical needs of the woodworking and joinery sector for the year ahead.

BWF chief executive Iain McIlwee said though the organisation’s recent state of trade survey showed a balance of 43% of joinery firms reporting increasing sales, the growth was too reliant on the new homes sector.

He said broadening the scope and sustainability of recent growth should involve extending the 5% VAT rate to cover all private housing repairs and maintenance work.

He also wants to see an extension of the Small Business Rate Relief beyond March 31, 2014; recognition of sustainable materials like timber in the Green Deal; and government support for the National Specialist Contractors Council’s Fair Payment Campaign.

The FMB’s Brian Berry also called on the chancellor to cut VAT on home improvement work – a move he said would encourage more homeowners to install energy-saving measures and help families fight increasing energy bills.

“Just under half of EU member states currently offer a discounted rate of VAT on this type of work, so why is the UK not taking advantage of the opportunity to incentivise the market in this way,” said Mr Berry.

The chancellor’s autumn statement is scheduled to start at 11.15am tomorrow.