10 Dec

FMB renews call for VAT cut

FMB renews call for VAT cut

The Federation of Master Builders (FMB) has repeated its demand that the level of VAT on home renovation and improvement work should be trimmed to five per cent.

It follows the publication of a report detailing the scale of Britain's informal economy by the House of Commons public account committee.

FMB director of external affairs Brian Berry suggested that informal traders are undercutting legitimate operators because of the price gap the VAT bill creates.

"Reducing the rate of VAT on domestic building work to five per cent will significantly reduce the commercial advantage of the VAT evading trader," he said.

Such a move could help first-time buyers, who would be able to buy a home and then add improvements to it at a lower cost.

The FMB is part of the 'Cut the VAT' coalition, which is aiming to make building costs cheaper.

Last week the Royal Institute of British Architects became the latest organisation to join the body.

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