The Construction Products Association (CPA) is increasing pressure on the government to reduce VAT to 5% on all domestic repair, maintenance and improvement work (RM&I) by publishing the results of a new study.

The CPA has already discussed the study’s findings, which support a VAT reduction, with construction minister Nigel Griffiths. It will use the report in its submission to the chancellor in advance of his pre budget report later this year.

Michael Ankers, CPA chief executive, said: “The report by Capital Economics clearly concludes that the case for reducing VAT to 5% on domestic RM&I is a strong one and can be justified on its own merits without the need to balance this by the imposition of VAT on new house building.”