A VAT reduction on all domestic repairs and maintenance is one of the measures on the Construction Products Association‘s (CPA) wish list submitted to chancellor Gordon Brown in advance of the Budget.
The CPA says a reduction in VAT to 5% would create extra jobs and work, as well as supporting the DTI‘s Quality Mark Scheme which combats cowboy builders.
CPA president Roy Harrison says protracted global economic weakness and political uncertainties, combined with recent tax measures including the Climate Change Levy (CCL) and higher National Insurance contributions, are generating “challenging” conditions for many firms.
The association is also calling for an environmental assessment of the CCL and Aggregates Tax; a minimum 35% allowance rate on all capital investment; a reduction in stamp duty on commercial property transactions; and a reduction in Insurance Premium Tax to offset increases in Employers’ Liability Insurance.
