Parliamentary questions raised on behalf of Built Environment Forum Scotland (BEFS), of which the IHBC is a member, confirm that the Scottish Government considers the move ‘deeply regrettable’, and ‘in the opposite direction from the approach that the Scottish Ministers advocate.’
Responses to two parliamentary questions initiated by BEFS and submitted by Patricia Ferguson MSP have confirmed that the Scottish Government has not had an opportunity to consider the impact of the policy despite the scale of the impact on devolved matters in planning.
Scottish Government Cabinet Secretary Fiona Hyslop, responding to the questions, described the move on VAT as ‘a deeply regrettable step in the opposite direction from the approach that the Scottish Ministers advocate.’
Hyslop pointed out that ‘Maintaining the VAT relief on alterations to listed buildings, and reducing the VAT rate applicable to repairs and maintenance, would be important positive steps which would stimulate economic activity in a sector worth around £2.3 billion gross value added to Scotland’s economy, a significant proportion of which is attributable to construction activity’.
Sources
Question:
To ask the Scottish Executive whether it will respond to the UK Government’s consultation on the proposal to remove the zero rate of VAT for approved work to listed buildings. Question S4W-07024: Patricia Ferguson, Glasgow Maryhill and Springburn, Scottish Labour, Date Lodged: 02/05/2012)
Answer by Fiona Hyslop (14/05/2012):
Unfortunately, the consultation document published by HM Revenue and Customs does not offer the opportunity to comment on the substance of the proposals, only on the draft legislation that has been prepared to implement the proposed changes. Further, despite the consultation document pronouncing that the proposed changes represent ‘the best option’, the UK Government officials have not, at the time of writing, approached Scottish officials to discuss the impact of this measure on the historic environment, an area of policy which is devolved.
I have therefore written to the Chancellor of the Exchequer expressing my concern about the proposal to remove VAT relief on approved alterations to listed buildings and urging him to reconsider introducing this deeply regrettable policy change.
Question:
To ask the Scottish Executive what the impact will be on listed buildings in Scotland of the UK’s Government’s proposal to withdraw VAT relief on approved alterations to them and what the reasons are for its position on this matter. (Question S4W-07023: Patricia Ferguson, Glasgow Maryhill and Springburn, Scottish Labour, Date Lodged: 02/05/2012)
Answer by Fiona Hyslop (14/05/2012):
The UK Government’s proposal is clearly a deeply regrettable step in the opposite direction from the approach that the Scottish Ministers advocate. Maintaining the VAT relief on alterations to listed buildings, and reducing the VAT rate applicable to repairs and maintenance, would be important positive steps which would stimulate economic activity in a sector worth around £2.3 billion gross value added to Scotland’s economy, a significant proportion of which is attributable to construction activity. It would further bring empty homes back into use, reduce the incentive to use non-VAT registered contractors and help improve the condition of houses.
I wrote to the Chancellor of the Exchequer on 26 April urging him to withdraw from this policy.
For the original BEFS motion see IHBC NewsBlog at: LINK
