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Understand the implementation of reverse charge VAT and the affect it will have on cash flow for construction firms.

The recovery in construction activity reported in today’s Construction PMI data can be accelerated if the Government takes decisive action in its March Budget.

The Government must cut VAT on home improvement works to 5% to boost jobs and stimulate the economy.

Following a cross-industry campaign to delay the implementation of reverse charge VAT for construction, the Government has announced it will be pushed back by five months which will give small businesses in the supply chain much-needed breathing space to work towards recovering cashflow.

The FMB has jointly written to the Chancellor of the Exchequer, along with 15 other leading construction organisations, to request a delay to the introduction of reverse charge VAT.

The Chancellor has delivered a ‘first aid Budget’ to overcome the short-term crisis caused by COVID-19 but has missed an important opportunity to announce interventions that would support the sustainable, long-term recovery construction needs.

Ahead of the Chancellor’s first Budget on Wednesday 11 March, we are calling on the Government to cut VAT on home repair and renovation works to boost economic growth nationwide and help level up across the country.

We welcome the recommendation in today’s final report of the Building Better, Building Beautiful Commission highlighting problems in our VAT regime in the UK.

The Chancellor must use the upcoming Budget to slash the rate of VAT on repair and maintenance work and to invest in the construction sector in order to maintain the industry’s recovery.

VAT cut on home improvements could generate £15bn in new taxes, create 95,000 jobs and unlock £1bn green revolution.

The Government’s decision to delay by one year the implementation of potentially damaging VAT changes for construction companies is a victory for common sense.

The Government must delay the implementation of damaging VAT changes in the construction industry, demands a coalition of the major trade bodies in the sector.

We are calling for a delay to the implementation of Reverse Charge VAT in response to the PMI data which shows that construction activity has fallen for the third month in a row and business optimism has slid to its lowest levels since November 2012.

Boris the builder must build columns instead of writing them if he is to fix the housing crisis and restore the hope of home ownership to a generation.

The Government has not properly prepared the construction industry for major VAT changes coming in October and needs to delay their implementation to avoid chaos.