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Report examines the benefit of reducing VAT on housing refurbishment

A recent piece of research by Experian suggests that the UK economy would see the benefits of reducing VAT when it comes to housing renovations. The firm estimates that such a reduction could inject £15 billion into the economy between 2015 and 2020.

Many charities and business groups have come forward in support of the research, and are urging the Government to commit to a 15% reduction in VAT as part of its manifesto for the 2015 general election.

The so-called “Cut the VAT” campaign outlines several of the key benefits across the whole economy, not just through the increase in sales and economic output within the construction sector, but also with the boost in employment and apprenticeships. Indeed, the campaign suggests that such a cut in VAT could create as many as 95,000 jobs.

The reduction in VAT across many industries can have net effects on those already employed to fit roofing, double glazing, masonry or engineered flooring. From Liverpool to Leicester, the UK workforce will likely be welcoming the campaign.

Ray Horwood of the National Federation of Roofing Contractors goes as far as to say that such a step by the Government would be:

“[…] a boost and clear message of support to the responsible and qualified SME firms that will undertake this work.”

 

Brian Berry, of the Federation of Master Builders, suggests that the VAT reduction will also:

“[…] empower home owners to contribute to growth, jobs and greener homes.”

 

Houses that previously remain empty, or even those that are in poor states of repair, can become more valuable and also viable as properties.

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