Tax Cut for Roofing & Construction Repair Work Backed by FMB

THE FMB HAS ADDED its voice to calls for repair and renovation work in roofing and construction to receive a tax cut to help stimulate growth and meet carbon emissions targets.

In its pre-Budget submission to HM Treasury, the FMB, the largest trade association in the UK construction industry, is calling for the labour-element of VAT to be cut from 20% to 5% on repair and renovation works on domestic dwellings.

In data released by the FMB, 212 out of 357 small to medium-sized building companies sampled told us that the new Government could best support the construction industry by using new freedoms granted by the UK’s exit from the European Union to cut VAT.

Brian Berry, FMB Chief Executive 

Brian Berry, Chief Executive of the FMB, said: “The new Chancellor has a unique opportunity in his first Budget to signal a green, positive outlook for builders who are critical to delivering the homes and infrastructure this country needs.”

“The fact that nearly two-thirds (59%) of builders say cutting VAT would boost their business sends  a clear message to the Government that if it is wants to deliver sustained economic growth in our building industry this is the single best policy change to achieve that.”

Other Support

The FMB also called for support small to medium-sized house builders by reforming planning fees, for the Treasury to create incentives for low-carbon house builder pioneers and also to review and reform the UK Apprenticeship Levy to ensure construction has the skills it needs.

Berry continued: “We need a National Retrofit Strategy that sends homeowners and landlords a strong signal to invest in their properties, reduce costs, and cut carbon.

“Cutting VAT is the key to unlock this and set us on track to achieve Net Zero by 2050 by saving almost 240,000 tonnes of CO2 from 92,000 homes.

“That means we need to urgently insulate eight million lofts, eight million solid walls and five million cavity walls. Making homeowners more likely to take these steps by cutting VAT would give the Government a good news story ahead of hosting the UN Climate Change Conference (COP26) later this year.”

Recently-appointed Chancellor, Rishi Sunak is to deliver the budget on Wednesday 11 March.

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