A coalition of 34 organisations from the housing sector has called on George Osborne to cut VAT on renovation and repair work.
In an open letter to the Chancellor ahead of his Autumn statement the group asks for VAT on domestic building work to be cut down from 20% to 5%, in order to make energy saving measures cheaper and encourage their use.
Loyd Grossman, Chairman of The Heritage Alliance and a signatory to the letter said: “Compared to other EU countries, we have a much higher proportion of older properties and many are in desperate need of renovation and repair. A reduction in VAT would certainly help kick-start a big increase in this type of work and would lead to an enormous improvement to our existing buildings.”
Paula Higgins, Chief Executive of the Home Owners Alliance and another of the signatories added: “It is ridiculous that hard-pressed home owners living in cold, draughty, leaky and cramped houses are being taxed by the Government for trying to make their homes fit to live in. Many home owners can only afford to do essential repairs and maintenance by going to the black market.”