The Federation of Master Builders (FMB) has asked the chancellor to use his April Budget to announce a cut in VAT to 5% on property refurbishment.
Richard Diment, director-general of the FMB, made the plea at the consumer launch of the Get Britain Building campaign at the Home Building and Renovating show at Birmingham’s NEC.
The call follows Europe’s decision to allow EU member states to cut VAT to 5% on certain things, including home repairs and improvements.
“At the European level the barriers to cutting VAT have been removed so now the government can, and should, take action now,” he said.
“The Budget next month is the perfect time for the Treasury to make an announcement on this and in so doing do something tangible for homeowners as well as increasing its revenue.”
He said cutting VAT on home maintenance and repairs will not only boost the economy, through increased workloads for builders, but also create a better way of life for people all over the country,” he said.
“At the moment lots of people, especially the vulnerable and the elderly, are unable to keep their homes and themselves warm. Cutting VAT would encourage people to carry out energy efficient repairs and maintenance which, in turn, would mean savings on energy bills and fewer people living in fuel poverty.”