KBzine: the original kitchen and bathroom industry e-news - since 2002
23rd September 2016
We strongly recommend viewing KBzine full size in your web browser. Click our masthead above to visit our website version.
The Tile Association shows support for 'Cut The VAT' campaign
The Tile Association has announced its support for the 'Cut The VAT' campaign, adding its name to an ever growing list of organisations encouraging the UK Government to reduce VAT on all home repair, maintenance and improvement work from 20% to 5%.
The EU has changed the law to allow member states to permanently reduce VAT to 5% on the 'renovation and repairing of private dwellings' to support economic growth. Support for the campaign now extends to over 50 organisations, representing hundreds of thousands of businesses, as well as numerous individuals, including politicians and celebrities.
By charging 20% VAT on all home repair, maintenance and improvement work, the Government is exacerbating a number of serious social, economic and environmental problems. Instead, introducing a reduced rate of VAT for all home repair and improvement work is a simple single plan to relieve the country of many of these problems.
The UK economy is facing a weak recovery from the recent recession. Output in the construction industry shrunk faster than the economy as a whole during the recession and recent forecasts suggest there will be no significant sign of recovery in the industry until 2014. Successful trials in a number of EU countries strongly suggest a cut in VAT on home repair and improvement work would reap economic benefits for the UK.
Furthermore, 249,000 workforce jobs have been lost in the construction sector alone since 2007 according to the Office for National Statistics. Unless the industry can recruit and train sufficient people now there will be a serious skills shortage in future years. A cut in VAT on home repair and improvement work could create thousands of new jobs in the construction sector and the wider economy.
According to Trading Standards a staggering £170 million is stolen by rogue traders from unsuspecting homeowners across Britain each year, and they also cause significant damage to law-abiding businesses. Rogues traders flourish by evading VAT so they can offer a cheap deal. Again, this simple, single action to cut VAT on home repair and improvement work to 5% would protect consumers and legitimate businesses by significantly reducing the competitive advantage of rogue traders.
The Labour Party, Plaid Cmyru and the Scottish National Party all support the policy of reducing VAT on home repair, maintenance and improvement to 5%. The Liberal Democrats also argued for a lower rate of VAT on home repairs in their 2010 General Election manifesto.
"The TTA wholeheartedly supports the campaign, and urges our industry to do the same," says Speaking about the campaign, TTA Executive Director Lesley Day. "Our members pride themselves on the high standard of their work and to ensure they can remain competitive it is essential that these measures are taken."
Following the announcement of The Tile Association's backing for the campaign, Brian Berry, Director of External Affairs at the Federation of Master Builders and leading campaign spokesperson said:
"It is fantastic to have the full support of The Tile Association and its members behind the Cut the VAT Campaign. Support for the campaign is growing rapidly as more and more businesses are looking to the Government to set the right conditions for growth in the construction industry and the wider economy. Current forecasts for recovery are very bleak, which is why the Government must act swiftly to introduce this change as part of its plan for growth."
The Tile Association is giving its full backing to the campaign and if you agree that the UK Government should reduce VAT on all home repair, maintenance and improvement, then please visit www.cutthevat.co.uk to find out how you can support the campaign.
28th October 2011