Thursday 16th December 2010 - FOR IMMEDIATE RELEASE
The planned rise in VAT to 20 per cent in January next year will harm the construction sector and thousands of households in Scotland but a targeted cut in VAT would create up to 2,235 new construction jobs in 2011 and deliver a huge boost to tackling energy efficiency and fuel poverty. This is the joint message from Sandra White MSP and the Federation of Master Builders (FMB) in Scotland in a motion lodged in the Scottish Parliament this week.
Sandra White MSP said:
"In the present economic crisis and with VAT rising to 20 per cent, it is imperative that we do all we can to help not only homeowners but the hard-pressed construction industry and I believe that reducing VAT to five per cent on building repairs will protect homeowners against cowboy builders and traders who deal in cash-in-hand jobs. That is why I am encouraging my fellow MSPs to sign this motion and push the UK Government to take action on the issue before more lasting damage is done to the hard-pressed Scottish building trade.”
Grahame Barn, Director of FMB Scotland added:
“Builders in Scotland are facing a bitter winter. The sector has been hammered by the downturn while the recent freezing weather has caused unprecedented disruption almost everywhere. Our concern is that the VAT rise could be the last straw for many Scottish firms. A targeted VAT cut would ease some of that pressure at a stroke. With the Scottish Government reporting record number of calls to the Home Energy Helpline from householders concerned at the cost of heating their homes, a VAT cut would provide huge help for those wanting to upgrade their home insulation and provide a great boost for demanding targets contained in the Energy Efficiency Action Plan.”
