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Cut VAT on home improvements to boost economy, says FMB

The Federation of Master Builders (FMB) is calling for the Government to cut the VAT on home improvement work following official data published by the ONS. While there has been a rise in output over the first quarter of the year, construction output decreased month-on-month by 1.9% and the repair and maintenance series fell to its lowest level since December 2018, experiencing a fall of 3.1% compared to the previous month. 

Brian Berry, chief executive at the FMB, said: “It’s not at all surprising that construction output has dropped at the end of the first quarter of this year, given the unprecedented political uncertainty we’ve been facing. To get us through these turbulent times, the Government must be bold in its thinking when it comes to supporting the economy bucking any downward turn. One course of action would be to cut VAT on work in the home improvement and private domestic sectors from 20% to 5%.”

Berry continued: “A cut in VAT would help stimulate demand from homeowners resulting in more work for the thousands of small to medium-sized construction companies which would help support local economies and increase training opportunities.”

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