24th November 2008 – FOR IMMEDIATE RELEASE
The Federation of Master Builders (FMB) gives the Chancellor 3 out of 10 for today’s Pre-Budget Report. Last week the FMB set out its 10 point plan to help kick start the building industry. FMB measures included reducing VAT from 17.5 per cent to five per cent on repairs and maintenance work; reintroducing mortgage interest tax relief; reforming Stamp Duty to make it a graduated tax; and abandoning the proposed Community Infrastructure Levy. Today the Chancellor announced just three of the FMB’s proposals as part of his plan to help the UK through the downturn:
Richard Diment, Director-General of the FMB said:
“The 2.5 per cent cut in VAT is unlikely to have a profound impact on the housing market. If the Government was serious about kick starting the building industry he would have reduced VAT to 5 per cent on all repair and maintenance work. It is very disappointing that the Chancellor failed to reintroduce “Mortgage Interest Tax relief” as this would have injected capital back into the market at a time when the property market is struggling and some estate agents are finding it difficult to sell even one home a week. Even more disappointing was the failure to reform Stamp Duty, to make it a graduated tax which would have gone a long way to encouraging confidence and growth in the property market.”
Diment continued:
“At a time when 41 per cent of FMB members are expecting to make redundancies over the coming months, the Chancellor could have gone further to stop the introduction of further taxes on development. With house building at its lowest level since 1945 it would have been good if the Chancellor could have announced the abandonment of the proposed Community Infrastructure Levy. Quite simply 3 out 10 is just not good enough; the building industry needs the Government to try harder in order to make it through the next few months and we therefore urge the Chancellor to rethink his Budget to ensure that the construction industry and particularly small and medium sized builders are given more help to make it through the economic downturn.”
ENDS
