The Scottish National Party (SNP) unanimously voted at their recent party conference to make a cut in VAT from 17.5 per cent to five per cent for all building repair and maintenance work party policy.
The Federation of Master Builders (FMB) have been campaigning for a cut in VAT for all building repair and maintenance work for many years and have recently had a number of meetings with SNP politicians to explain how a cut in VAT would benefit Scottish homeowners, businesses and historic buildings.
Jamie Hepburn MSP has been particularly vocal amongst SNP politicians in calling for a cut in VAT. With nearly a quarter of all Scottish households now experiencing fuel poverty, Mr. Hepburn believes that a cut in VAT would enable thousands of families across Scotland to upgrade their homes to make them more energy efficient.
Grahame Barn, Director of FMB Scotland said:
“I am delighted that the SNP has grasped the importance of cutting VAT. Reducing VAT for all building repair and maintenance work would greatly benefit Scotland, where we have a lot of people working in the construction industry who are presently suffering as a result of the credit crunch. Stimulating the economy in such a way will not just help these businesses it would also allow many of our empty homes to be brought back into use as the current high rate of VAT makes them too expensive for many owners to maintain or refurbish. Reducing the rate of VAT would also make it easier, as Jamie Hepburn points out, for people to make energy efficient improvements to their homes; not only reducing the carbon emissions of Scotland’s homes but also making them more economic to heat.”
Richard Hyslop, Cut the VAT Coalition Co-ordinator said:
“This is fantastic news! Earlier this month Plaid Cymru adopted a cut in VAT as party policy and now the SNP too. Next month EU Finance Ministers will be asked to decide whether to support the European Commission’s proposal to amend VAT Directive 2006/112/EC to provide Member States with the flexibility to apply reduced VAT rates for some labour-intensive services on a permanent basis. This would allow for a reduction in VAT from 17.5 per cent to five per cent on maintenance and repairs for homes, places of worship, heritage and historic buildings by Member States. The Coalition urges the Chancellor, Alistair Darling to listen to SNP and Plaid Cymru and vote to support the amendment of VAT Directive.”
29th October 2008
