Kate Hoey MP (Labour) and Bob Russell MP (Liberal Democrat) have delivered a 10,000 signature strong petition to 11 Downing Street, calling on the Chancellor of the Exchequer to cut VAT from 17.5% to 5% for building repair and maintenance work. The demand to cut VAT comes at a time when the Government is failing to achieve its ambitious target to cut carbon emissions by 80% by 2050; when the number of people living in fuel poverty currently is still rising from the current figure of 4.5 million; and when thousands of consumers are being fleeced by rogue traders offering cash deals to avoid VAT on home improvements.
The MPs were joined by three members of the Cut the VAT Coalition: Brian Berry of the Federation of Master Builders, Julia Goodwin of House Beautiful magazine, and Yvonne Orgill of the Bathroom Manufacturers' Association. In the week that the one hundredth MP signed the Early Day Motion (EDM 669) calling on the Government to VAT for building repair and maintenance work MPs voiced their concerns.
Speaking outside 11 Downing Street Kate Hoey MP said,
"We must change conditions so that it is cheaper and easier to make use of our existing properties to take the pressure off our countryside. The current 17.5% VAT rate is acting as a brake on regeneration and re-use of vacant or under used buildings and this needs to be reversed. We also need to make our existing buildings greener and more energy efficient. Recycling our built heritage by putting buildings back into beneficial use is an essential part of improving our quality of life."
Bob Russell MP agreed adding that,
"Rogue traders flourish by evading VAT and offering customers a cheap deal as a result. Every year more than £1 billion is paid out to rogue traders. Reducing the rate of VAT on domestic building work to 5% would reduce significantly the commercial advantage of the VAT evading trader. The financial incentive for a client to choose a rogue trader would diminish and a level playing field will emerge instead. In time, this will drive the rogue traders out of the market as customers focus on quality and value not just price."
Cut the VAT Coalition Coordinator, Richard Hyslop said,
"With the vast majority of MPs supporting a cut in VAT for building repair and maintenance work and with a majority of MPs from each of the three main political parties supporting a cut in VAT, the time for excuses is over; the Government must act now and cut this pernicious tax. Reducing VAT on building repair and maintenance work would help end the scandal of empty homes, reduce the number of families living in substandard housing, stop the destruction of existing buildings, tackle fuel poverty, and increase the number of greener homes."
TaxPayers' Alliance Chief Executive Matthew Elliott said:
"These are tough economic times, and VAT is making life even more difficult for ordinary families, builders and the housing market. If people want to make their homes more energy efficient, boost their standard of living or give the housing market a shot in the arm the Government should make it as easy as possible, not stand in the way. It's time for the tax man to help us all out and cut the VAT."
Support the campaign by signing up at www.cutthevat.co.uk
26 June 2008
