Bob Russell MP, Colchester, Liberal Democrat
"I urged the last Labour Government to cut the VAT on building maintenance and conversion of older buildings, without success, so I am disappointed to put it mildly that the Coalition
Government has actually made the situation even worse by increasing VAT to 20%. I voted against raising VAT. There is evidence that cutting the rate of VAT on housing repair, maintenance and improvement work to 5% would lead to a number of environmental, economic and social benefits. By applying a reduced rate to this type of work the Government would help create thousands of jobs in the construction industry, which is currently struggling and damaging the prospects of a wider economic recovery. Importantly a targeted cut in VAT would provide a major incentive for homeowners and landlords to improve the energy efficiency of their properties and help the Government cut carbon emissions in line with the UK's legal climate change commitments. Therefore, the Government must act swiftly to introduce this change."
Lorely Burt MP, Solihull, Liberal Democrat
“The Government should take seriously the calls from the construction industry to reduce VAT on home repair, maintenance and improvement work to 5%. I have long supported a reduced rate of VAT for this type of work, which would increase the number of construction jobs immediately and would continue to provide a sustained flow of new jobs over the next decade. The construction industry continues to be volatile and prospects for the next few years are uncertain. If the Government introduces this targeted VAT cut I believe it will make a real difference to the prospects for recovery in construction and help meet the Government’s targets for energy conservation.”
Steve Rotherham MP, Liverpool Walton, Labour
“Perhaps the Minister could consider lowering the VAT on home repair, maintenance and improvement works. Such a move could be used as a catalyst to stimulate activity. It could increase the overall tax-take that growth in the sector would generate.”
Brian Binley MP, Northampton South, Conservative
“The Federation of Master Builders has long campaigned for a reduction in the rate of VAT on home repair, maintenance and improvement work, estimating that a five per cent cut could lead to a loss of revenue to the Government of between £102 million and £508 million, but deliver a total stimulus to the economy of around £1.4 billion in the first year alone. Their estimates also suggest that around 34,500 new jobs in the sector (and 81,500 jobs in the wider economy) would be created by such a measure by 2019. Hardly Plan B but it could be a nudge in the right direction.”
Gordon Banks MP, Ochil & South Perthshire, Labour
“The Chancellor must listen to the calls from the construction industry and act urgently to permanently reduce VAT to 5% for the labour element of building repair and maintenance work. The government have the legal right to do this. Many businesses in Ochil and South Perthshire and across the UK would benefit considerably from this; it would help the homeowners, making repairs and maintenance more affordable for them, and would go some way to getting rid of the rogue traders. Rather than the loss of jobs, we would see the creation of more, allowing businesses to flourish and generally lifting the local economy and national economies as highlighted in the report from Experian last year which showed that revenue receipts could actually increase as result of this action.”
Lord Oakeshott of Seagrove Bay, Liberal Democrat
“There is one sensible tax cut that would tick all the boxes to help small businesses, boost
jobs, cut tax evasion and bring derelict and decaying homes back into use, and up to a decent standard. Why do we charge VAT at a crippling 20% on housing reconstruction, refurbishment, repairs and improvements? That is a serious distortion to the market where there is no VAT on new build. Cutting that VAT bill to 5% would really get white van man motoring, bring in more tax by cutting the cash-in-hand culture and kickstart productive long-term investment to meet desperate housing need.”
Zac Goldsmith MP, Richmond Park, Conservative
“I urge all the Ministers at the Department of Energy and Climate Change to do everything they can to persuade the Treasury to allow them to introduce greater incentives into the Bill. There are things that could be done. For example, we could reduce VAT on a wider range of energy efficiency materials.”
Roger Williams MP, Brecon and Radnorshire, Liberal Democrat
“The Green Deal will work, but it needs more incentives and I would like the Government to look at that. One option could be to reduce stamp duty on those houses that meet a minimum energy efficiency. Another option, suggested by the Federation of Master Builders, would be to ensure that all materials that go into the green deal have a VAT rate of 5%, reflecting their contribution to energy efficiency. The Government should look at a number of those issues as they introduce the green deal to ensure that it takes off more effectively and efficiently.”
Linda Riordan MP, Halifax, Labour
“This campaign has my full support. Dozens of small and medium sized businesses in Halifax and Calderdale would benefit considerably from a VAT cut on home repair, maintenance and improvement work. It would create jobs, allow businesses to flourish and boost the local economy. The Government should get on and do it as a matter of urgency.”
Brian Donohoe MP, Central Ayrshire, Labour
“The fear is that as a result of the VAT rise, homeowners will also be more vulnerable to rogue traders who will flood the market with their false claims they can make the VAT disappear. The reality is that rather than saving 20 per cent on the job, many homeowners will lose their money either through shoddy work or the trader running off with their deposit and doing no work at all.”
Dr Branka Dimitrijevic, School of the Built and Natural Environment, Glasgow Caledonian University
David Spence, School of Engineering and Sustainable Technologies, Carnegie College
Scotland
Alex Neil MSP, Cabinet Secretary for Infrastructure and Capital Investment
"It is a real distortion and very unfair that full VAT is charged on renovations and repairs. The SNP Government has been arguing for years with the Treasury that this vat should be reduced immediately to the lowest permissible level within the EU, i.e. 5% instead of 20% as at present. Such a move would act as a major stimulus to the building industry at a crucial time when it needs it."
Kevin Stewart MSP, Scottish National Party
"During this period of recovery we are seeing small construction firms suffer due to the increase in VAT by the UK Government and the UK’s cuts to capital investment. A cut to 5% for the construction and industry would provide the sector with a boost and encourage homeowners to make investments, that is why I am proud that the SNP is supporting the FSB and the ‘Cut the VAT coalition’ in their calls. The latest economic figures underline the need for action on VAT to be taken in targeted areas that will promote economic recovery. I am delighted that my motion has received cross party support and hope that the UK Government will take note."
Mike MacKenzie MSP, Scottish National Party
"I am pleased that Kevin [Stewart MSP] is championing this cause and would add my voice to his. Scotland’s construction industry stands ready to do its bit to help build our way towards a better future. A cut in VAT would be a step in the right direction. Any loss in revenue to the Treasury would be quickly recouped through enhanced economic activity."
Mark Griffin MSP, Scottish Labour Party
“I was happy to sign this motion. It is vitally important that the government eases some of the financial pressures being endured by hard working families throughout Scotland who cannot afford to move but could improve their homes. This can be achieved in part by reducing the VAT on home repair, improvements and maintenance work. Furthermore, the move would help stimulate the economy and give a boost to the construction industry, which has suffered badly as a consequence of the recession.”
Sandra White MSP, Scottish National Party
“In the present economic crisis and with VAT rising to 20 per cent, it is imperative that we do all we can to help not only homeowners but the hard-pressed construction industry and I believe that reducing VAT to five per cent on building repairs will protect homeowners against cowboy builders and traders who deal in cash-in-hand jobs. That is why I am encouraging my fellow MSPs to sign this motion and push the UK Government to take action on the issue before more lasting damage is done to the hard-pressed Scottish building trade.”
Wales
Jane Hutt AM, Minister for Finance and Leader of the House
“Welsh businesses in construction-associated industries asked me to make representations to the UK Government to reduce VAT on home improvements and repairs, which would give a major boost to our businesses. I wrote to the Treasury and pressed the case for reducing the rate of VAT on domestic repairs and improvements to energy efficiency from 20 per cent to 5 per cent, as requested, and surprisingly, and disappointingly, the Treasury refused to consider such a change. It was change that was directly requested by the construction industry and business itself.”
Kenneth Skates AM, Clwyd South, Labour
“The home building sector is of critical importance to the economy, often first into a recession and first to emerge. In order to stimulate the whole economy I firmly believe we need to assist the house building industry and a simple means off doing so would be the immediate reduction in VAT.”
Jocelyn Davis AM, South Wales East, Plaid Cymru
“The Federation of Master Builders has been running a repeated campaign about VAT. There is no VAT on new build, but there is considerable VAT on certain improvements. There is a worry that the increase in VAT is causing those who operate legally to be undermined by those who operate in the black market, so that is something of which we have to be careful. This Government supports the calls by the Federation of Master Builders to reduce VAT on home improvements and maintenance work, and I would be happy to write to the UK Government to ask it to consider that. I will place the reply in the Library for Members to see.”
Joyce Watson AM, Mid & West Wales, Labour
"The Welsh Assembly Government and the UK Government must work together to cut VAT in targeted ways in order to help the UK become a low carbon economy. Last year the European Union gave Member States the right to permanently reduce the rate of VAT to five percent, which means the UK Government has a unique opportunity to kick-start the economy and raise the standard of living for millions of people. I am encouraging my fellow Welsh Assembly Members to sign up to the Statement of Opinion and push the UK Government to introduce this measure to create jobs, eliminate cowboy builders, help those who cannot afford vital repairs to their homes and help achieve the UK’s legal requirement of cutting CO2 emissions by 80 percent by 2050."