Ahead of the Chancellor’s first Budget on Wednesday 11 March, the Federation of Master Builders (FMB) is calling on the Government to cut VAT on home repair and renovation works to boost economic growth nationwide. As well as helping to kick-start order books, a VAT cut would support local builders’ contribution to the UK’s net zero carbon emissions target by 2050 and preserve Britain’s built heritage, says the Federation. 

In its pre-Budget submission to HM Treasury, the FMB, the largest trade association in the UK construction industry, is calling for the labour element of VAT to be cut from 20% to 5% on repair and renovation works on domestic dwellings.  

Brian Berry, chief executive at the FMB, said: “The new Chancellor has a unique opportunity in his first Budget to signal a green, positive outlook for builders who are critical to delivering the homes and infrastructure this country needs. The fact that nearly two-thirds (59%) of builders say cutting VAT would boost their business sends  a clear message to the Government that if it is wants to deliver sustained economic growth in our building industry this is the single best policy change to achieve that.”