A broad coalition of organisations including the Federation of Master Builders (FMB), the Royal Institution of Chartered Surveyors (RICS), the Empty Homes Agency, the Bathroom Manufacturers Association and the National Home Improvement Council (NHIC), has been formed calling on the Government to cut VAT from 17.5 per cent to five per cent for all building repair and maintenance work.
The 'Cut the VAT' Coalition is calling for a reduction in VAT to help the Government achieve its target of cutting carbon emissions by 60 per cent by 2050; to help eliminate cowboy builders; and to tackle fuel poverty at a time when four million households cannot afford to heat their homes.
Richard Hyslop, Coalition Coordinator said, "I am delighted that so many organisations have decided to join together to lobby on the social, economic and environmental benefits of cutting VAT on building repair and maintenance work. Our efforts to date have already attracted support from a cross party group of politicians."
Yvonne Orgill, Chief Executive of the Bathroom Manufacturers Association and coalition member continued, "The Bathroom Manufacturers Association (BMA) representing 87 per cent of manufacturers of bathroom products trading in the UK fully supports the 'Cut the VAT' campaign to reduce VAT on materials, repair and maintenance to five per cent. It is vital that collectively we encourage householders to ensure their homes are fit for purpose and as energy and water efficient as possible. We need to make it easy for them to do and offer incentives. Reducing VAT is certainly the best incentive possible as other countries that employ this practice have proven and it is one way for Government to reach its aim of cutting carbon emissions by 60 per cent by 2050. A win-win solution."
Henry Oliver, Policy Adviser at the Empty Homes Agency and coalition member concluded, "The 17.5 per cent VAT rate is an unacceptable brake on the regeneration and re-use of vacant and under-used buildings. It favours new build over re-use, and therefore greater use of finite resources like greenfield land and minerals and higher CO2 emissions. It actively encourages neglect and decay. Bringing empty buildings back into beneficial use, in both town and country, is an essential part of sustainable development and improving people's quality of life. The Government needs to work a lot harder to join up its housing, regeneration, environmental and fiscal policies. Cutting VAT would be a excellent start."
31 January 2007
The Federation of Master Builders (FMB) has slammed the decision by the Government to downgrade the ministerial rank of the construction minister from Minister of State, to Parliamentary Under Secretary of State.
Brian Berry, FMB Director of External Affairs said, "While we welcome Baroness Vadera to her post as Parliamentary Under Secretary of State with responsibility for construction, we note with concern that she is the seventh person with responsibility for construction since 1 May 1997."
Berry continued, "The Government says that it wants new homes, better infrastructure, new schools and new hospitals, as well as delivery of prestige projects such as the Olympics, and then they downgrade the ministerial rank of the construction minister from Minister of State, to Parliamentary Under Secretary of State. This is indicative of the Government's inability to comprehend the centrality of the industry to the successful delivery of its public service programme. As a result, responsibility for the construction industry is spread across Whitehall with little or no effective co-ordination. The inevitable result is ineffective policies backed by often counterproductive policy drivers that more often hinder than help the industry in its attempts to deliver government priorities. It is time construction took its rightful place at the core of government policy."
Berry concluded, "The FMB wants a dedicated Construction Minister to act as a champion for the construction industry both within and outside government. The Minister should focus on developing strategies, attracting resources, and help to improve the image of the construction industry."
31 January 2007
The Federation of Master Builders (FMB) has welcomed the Government's u-turn in its plans to reform capital gains tax (CGT).
But the FMB warned that small businesses' trust in the Government has been damaged by the original proposals and the uncertainty over revisions to them.
In last year's Pre-Budget Report the Chancellor Alistair Darling announced a flat rate of CGT at 18%, abolishing taper relief and leaving many small business owners facing massive tax rises from April this year.
The Chancellor today outlined revisions to those plans, which would give entrepreneurs a 10% rate on the first £1 million of gain.
Richard Diment, FMB Director General said, "We are obviously delighted that the Chancellor has been listening to organisations like ourselves and has reversed his earlier disastrous decision. We are however very concerned by the way in which the whole issue has been handled and how it has seriously eroded small businesses' trust in the Government."
Diment continued, "The government's hastily concocted original proposals have caused a tremendous amount of anguish to thousands of small business owners. Although the government has seen sense and stepped back from its initial catastrophic, proposals, it should realise that it needs to think these things through and consult fully, before announcing them. This time they have just lost a significant proportion of business confidence in government, next time, it could be a lot worse."
25 January 2007
The number of client enquiries for all types of building work has fallen to its lowest level since 2005, with 40% of builders reporting a drop in enquiries, warns the FMB in its latest State of Trade Survey for the last quarter of 2007.
Brian Berry, Director of External Affairs said,
"Our latest survey of work activity within the building sector is further evidence of a slowdown in the economy and a signal that people are beginning to feel the pinch as mortgage and energy bills increase. What is concerning is that with the exception of Scotland the drop off in enquiries is consistent right across the UK and for all types of building work including housing and non-residential buildings as well as for both private and public sector clients. "
The FMB also reveals that allied to the fall off in client enquiries is the fall in the proportion of builders reporting difficulty recruiting employees or hiring sub-contractors. However, certain trades are still in short supply in particular plumbers, carpenters and joiners.
Berry continued,
"There is some good news for both builders and clients in these uncertain economic times. FMB members are reporting far fewer delays in the supply of building materials and products, which should help speed up the building process."
18 January 2007
Taylor Wimpey and Barratt's decision to cut payments to their subcontractors and suppliers by as much as 5% is nothing short of scandalous, says the FMB. The cut in payments has been introduced by the major contractors because of claims about the economic downturn for the house building industry.
Brian Berry, Director of External Affairs at the FMB says, "It is totally unacceptable for major contractors to treat subcontractors and suppliers with this amount of contempt. We will be looking at the legality of these decisions and championing a united response from the SME sector. These decisions by major contractors make a nonsense of all the talk about partnering and the respect for people agenda. It just shows that when push comes to shove it is the SMEs who get shafted."
Berry concluded, "We will fight this action tooth and nail."
17 January 2007
A cross party group of MPs is supporting the call from the FMB to cut VAT for all maintenance and home improvement work.
The Early Day Motion (EDM) tabled by Bob Russell MP (Liberal Democrat), Brian Binley MP (Conservative), Bill Olner MP (Labour), and Andrew George MP (Liberal Democrat) calls on the Government to reduce VAT from 17.5% to 5% on building repair and improvement work to existing buildings. The politicians go on to argue that cutting VAT would benefit millions of UK home owners by getting rid of rogue builders, help those who cannot afford vital repairs to their homes, bring empty homes back into use, and protect the countryside and UK heritage. They also state that reducing VAT in this area would make it easier for home owners to make energy efficient repairs and improvements to their properties, thus helping to make the UK's existing building stock greener and more energy efficient.
Brian Berry, Director of External Affairs at the FMB said, "We are delighted that politicians are beginning to listen to the arguments the FMB has been making. Not just in Westminster, but also in the Scottish Parliament where a similar motion has also been tabled."
Berry continued, "With the number of people living in fuel poverty in this country doubling since 2004 cutting VAT would enable thousands of families to upgrade their homes to make them more energy efficient and enjoy a warmer winter. The truth is that the current high rate of VAT on building repair work prevents people, particularly those on low-incomes, from maintaining their homes. In many instances, this results in people living in misery because they cannot afford to have basic repairs or central heating installed."
10 January 2008
Government funding for the Health and Safety Executive (HSE) needs to be increased if the escalation in the number of construction deaths, which has risen from 60 to 77, is to be reversed warns the FMB in its written evidence to the House of Commons Work and Pensions Select Committee inquiry into the operation and work of the Health and Safety Commission and the Health and Safety Executive (HSE).
Richard Diment, Director-General of the FMB says, "Any action that saves a life is worth taking. It is therefore incredulous that at a time when the Government is wanting to cut the number of deaths on construction sites its funding for the HSE is resulting in a series of cuts to HSE staff which has to be made in order for the HSE to say within budget. HSE has already had to make staffing cuts in 2003-4 and a further 250-350 posts are to be lost by 2008 via natural wastage."
Diment continued, "What is the point in the Government introducing yet more health and safety legislation such as the new Corporate Manslaughter Act when it doesn't provide the resources to enforce what legislation it already has in place. It makes a nonsense of the whole process."
8 January 2008
Npower's decision to increase electricity prices by 12.7% and gas bills by 17.2% will mean thousands more pensioners and those living on low incomes will fall into fuel poverty unless the Government acts now to help make Britain's homes more energy efficient.
Brian Berry, Director of External Affairs, at the FMB says, "The number of people living in fuel poverty in this country has doubled since 2004 and the increase in energy prices will only makes matters worse. The Government cannot sit by and let the most vulnerable people in society suffer any more. We know that even before the recent hike in energy bills a staggering 1.25 million pensioner households live in fuel poverty and that 22% of older people living in fuel poverty go without gas or electricity in order to make ends meet. More worrying is the fact that last year 25,000 people over the age of 65 died of cold related illnesses."
Berry continues, "The Government could stop this desperate situation from getting even worse if it cut VAT on all energy efficient home improvements from 17.5% to 5%. This simple cut would enable thousands of families to upgrade their homes to make them more energy efficient and enjoy a warmer winter. The truth is that the current high rate of VAT on building repair work prevents people, particularly those on low-incomes, from maintaining their homes. In many instances, this results in people living in misery because they cannot afford to have basic repairs or central heating installed."
Berry concluded, "How much higher do fuel bills have to rise before the Government will wake up and cut VAT on measures to make our homes warmer? The simple fact is that winter is setting in and the number of people living in fuel poverty is increasing and they need action now."
7 January 2008
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