The Federation of Small Businesses has joined the call for a reduced rate of VAT on the cost of home renovations.
The federation said a new survey of its members in the construction sector showed 59% had seen a decline in trade during the previous six months and 37% said their financial prospects were poor.
The FSB said it was now working with the Federation of Master Builders on the campaign to reduce VAT on repair, maintenance and improvements from 15% to 5%.
“Confidence in the smaller building projects has dropped to a low and people should be given an incentive to go ahead,” said FSB national policy chairman John Walker. “This will give a kick-start to the important, but beleaguered construction industry.”
