Despite a promise by the Lib Dems to reduce VAT on housing repair, maintenance and improvement work (RMI), Britain’s leading builders group said none of the political parties’ election manifestos goes far enough in helping the construction industry.
The Lib Dems’ promise to equalise VAT on newbuild and repair and maintenance on an overall revenue-neutral basis goes some way to meeting one of the central demands of the Get Britain Building campaign, which has continually called for VAT on RMI work to be reduced from 17.5% to 5%.
The Federation of Master Builders said the Lib Dems’ policies came closest to providing what was required from builders (through the VAT cut), but said the party’s proposal to add VAT to new houses would inhibit an already sluggish housebuilding market.
“Getting the housing market moving again is key to many small builders who are looking to build more houses, as well as helping to improve our existing homes,” said FMB director-general Richard Diment.
The FMB also criticised Labour’s commitment to build 50,000 new council homes over the next five years as insufficient, while it said the Conservatives’ plan to abolish national housing targets meant the construction of new homes would be dependent on local communities wanting development in their area.
“It is all very disappointing,” said Mr Diment.
