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Construction industry unites in call for VAT cut on refurbs

The construction industry has united in its call to the Chancellor of the Exchequer to cut VAT to five percent for property refurbishment in his Budget next Wednesday.

A coalition of interests including the Construction Products Association (CPA), the Federation of Master Builders (FMB), the Royal Institute of British Architects (RIBA) and the Royal Institution of Chartered Surveyors (RICS) has united to write to the Chancellor arguing that a cut in VAT would help kick start the British economy.

Michael Ankers Chief Executive of the CPA said: “The Chancellor has a unique opportunity in his Budget to take advantage of the EU decision of 10th March 2009, which allows Member States to reduce VAT on services, and cut the current rate of VAT from 15 to five percent for all private housing repair and maintenance work. 

'This will provide a far more effective fiscal stimulus than many of the other measures the government has introduced or is considering, by helping to sustain employment in many thousands of SMEs and using construction products, of which a high proportion are manufactured in the UK.”