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Britain's builders have given a cautious welcome to the Chancellor's Pre-Budget Report but had hoped that instead of just 'tinkering' Gordon Brown had really done something to address the fiscal distortions affecting the building industry.
The Federation of Master Builders, representing some 13,000 building companies, welcomed the proposals to abolish stamp duty for all property transactions worth up to £150,000 in 2000 designated deprived areas. It praised the moves to introduce a new flat scheme for VAT for small businesses and the introduction of tax credits for employee training. The Federation also welcomed the proposed changes to the planning procedures and the intentions to reduce the capital gains tax on business assets. However, it felt that the Chancellor had failed to really address the Government's tax distortion of the construction industry that benefits the rogue trader to the detriment of the professional builder.
Ian Davis, Director General of the Federation, said:
"The introduction of a new flat rate scheme for VAT is to be welcomed. The simplification of VAT and a flat rate will give real benefits to small businesses as will the tax credits for training and reductions in capital gains tax. Furthermore, anything that can be done to rationalise the planning system and encourage investment into deprived areas is to be commended. However, on the real issues that need to be addressed the Chancellor has either just tinkered with or avoided all together. We would still like the Chancellor to take effective measures to stop rogue traders."
First posted: 28 November 2001. Last modified: 28 November 2001.
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