The IHBC has welcomed the news that the Green Party has announced a new key pledge to cut the VAT on housing repair and renovations.
Mike Brown, IHBC Chair said: ‘Members will recall the IHBC co-sponsoring last year the new evidence collated by Experian in the cited report and the launch event we held at the Houses of Parliament. While the various MPs (of all stripes) present at the launch expressed interest in the report and a number undertook to present it to the Treasury, sadly, if not predictably, it was subsequently dismissed by Treasury Officials as ‘contrary to the need for austerity’.’
‘Attempts to persuade them that this and other measures such as Heritage Tax Credits were vital (and cost effective) investments in the UK’s heritage fell on stony ground. It is, therefore, encouraging to see at least one party recognising the potential of the ‘Cut the VAT’ proposal – notably a party that does not subscribe to the prevailing Treasury ethos, nor, it should be conceded, is likely to form the next government. Members will, no doubt make their own minds up on who to vote for on the 7th May, and in order to scotch any perception of partisanship I must point out that ‘other parties are available!’
IHBC Director Seán O’Reilly said: ‘Of course the IHBC is not resting on this while the elections progress. Indeed we are also actively exploring the idea of a UK version of the US Tax Credit system – provisionally called UK HTCS (UK Heritage Tax Credits) with a number of private and public interests that see the value of such a heritage-specific tax relief. These ideas will take time to evolve, but we are sufficiently clear about the cross-cutting economic and environmental benefits of such relief to see real value in continuing our work here’.
The Federation of Master Builders (FMB) writes:
The Green Party has pledged to cut VAT on housing repairs and renovations.
Currently the VAT rate on repairs and renovations is 20% but, with the UK housing stock in desperate need of improvements such as insulation, a coalition led by the Federation of Master Builders (FMB) has been calling for a reduction to 5%, the lowest level allowed by European rules.
The latest independent economic research from Experian shows that a reduction in VAT on housing renovation and repair from 20% to 5% could create 42,000 extra full-time equivalent construction jobs from 2015 to 2020 and more still, an additional 53,000 jobs in the wider economy over the same five-year period. Additionally a cut in the VAT rate would incentivise the ‘greening’ of homes through insulation and other measures. The total cost of the VAT cut would be £6.6bn over the five years from 2015 but would result in an economic stimulus of £15bn in the wider economy.
Tom Chance, Green Party housing spokesperson, said: ‘This VAT cut would be a real boost for green jobs and warm homes. It comes at a time when we desperately need to be investing in a nationwide home insulation scheme, to cut bills and end the scandal of fuel poverty. This election presents Britain with a chance to vote for change. This VAT cut, just one of an array of bold policies from the Green Party, demonstrates our commitment to building a Britain of warm, comfortable homes.’
The Greens’ pledge to cut VAT comes after the FMB launched a campaign to ‘Cut the VAT’.
Brian Berry, Chief Executive of the FMB, said: ‘A VAT reduction on housing renovation and repair work will empower home owners to contribute to growth, jobs and greener homes. There is no other proposal that will help the UK achieve so many of its economic, environmental and social aims with so little cost to the public purse. Independent research shows that the wider benefits of a VAT reduction on housing renovation and repair would stimulate more than £15 billion of wider economic activity, which completely overshadows any direct losses to Treasury coffers due to a drop in the percentage charged for VAT. The Green Party is the latest political party to commit to a VAT reduction on housing renovation and repair and we are delighted they see the enormous value of this policy.’
