The Glass and Glazing Federation (GGF) in conjunction with the Cut the Vat Campaign Coalition is sponsoring research company, Experian, to further examine the economic, environmental and social impact of a reduction in VAT on housing renovation and repair work.
Upon completion of the research, a new report will be launched at a Cut the Vat Campaign Reception on Monday, 3 March 2014, at the House of Commons, to an audience of MPs, Ministers and government officials from relevant departments, as well as selected media representatives.
The Cut the VAT Campaign Coalition is an alliance of more than 60 charities, trade associations and business groups, including the Glass and Glazing Federation, the Federation of Master Builders and the Home Owners’ Alliance. This broad coalition of organisations continues to make a strong case for a reduction in VAT to 5% on housing renovation and repair, and the new research will re-examine the evidence with a particular focus on the economic benefits over the period of the next Parliament.
In 2011, when VAT was increased from 17.5% to 20%, Experian’s research demonstrated that a targeted reduction in VAT to 5% on housing renovation and repair would provide a total economic stimulus of more than £20 billion by 2020. The same research stated that this reduction would create more than 32,000 extra full-time equivalent construction jobs by the end of 2015.
Nigel Rees, GGF Group chief executive, commented: “A single cut in VAT on housing renovation and repair work would help millions of households upgrade their homes and make them more energy efficient. A VAT reduction would not only reduce the cost of living, but it could also improve the economy, create more jobs and help much needed growth for SMEs. In addition, enabling homeowners to make their properties more energy efficient will help the UK meet its carbon reduction targets by lowering the emissions from our existing housing stock. We’re pleased to help sponsor this essential research, to support the Cut the Vat campaign.”