The Builders Merchants Federation (BMF) is the latest organisation to lay into the government’s budget, saying Gordon Brown and Alistair Darling have let the construction industry down.
BMF managing director Chris Pateman singled out the absence of a VAT cut on private home repairs and maintenance as the most disappointing aspect of the budget.
“The chancellor failed to do the one thing which could have made a real dif-ference to consumer confidence, to con-struction output, and to the long-term condition of our housing stock,” he said.
“He could have listened to BMF members – not to mention the Scottish Parliament and the Welsh Assembly – and selectively cut the rate of VAT to 5% on home improvements. It is a bitter disappointment and a major opportunity lost.”
Mr Pateman said Europe’s decision to allow EU member states to lower VAT in March gave the government a free hand to cut the rate and help the building industry.
“Europe’s politicians gave Gordon Brown and Alistair Darling the freedom to act – but they let us down.”
Mr Pateman said the £100m ear-marked as extra money for local authori-ties to build new energy-efficient housing equated to 2,000 homes at £50,000 each – approximately five homes per local authority.
