Monday, January 31st, 2011

Rhodri supports 5% VAT for Maintenance and Home Improvement Work

Assembly Member Rhodri Glyn Thomas has supported the call by the Federation of Master Builders for the UK Government to cut VAT to 5 per cent for all maintenance and home improvement work.

Mr. Thomas has agreed to support a Statement of Opinion in the Welsh Assembly saying that the reduction in VAT for housing repair, maintenance and improvement work would enable Wales to continue to be a leader in sustainable housing and greatly assist in halting the number of construction companies going over the edge during these tough economic times.

Rhodri Glyn Thomas said:

“Due to the difficult financial climate more and more people are opting to improve their homes with an extension or loft conversion instead of turning to the housing market.  A reduction in VAT to 5 per cent for such improvement works would go some way for homeowners to improve their houses to a quality standard at a cheaper rate whilst ensuring that employment in the construction sector can grow.

“In addition to the obvious economic benefits, the reduction in VAT for these works would help reduce the number of empty homes, help increase a person’s standard of living, help reduce the number of people living in fuel poverty and significantly reduce the cost of adaptations to properties for the elderly and disabled.

“A cut in VAT for all energy efficient home improvements will also allow homeowners to upgrade their homes to be more energy efficient and to enjoy what are becoming longer and colder winters. 

“Disabled Facilities Grants are seen as quite complex with ramps and bathrooms being exempt from VAT but other vital adaptations such as accessible kitchens and bedrooms are not exempt from VAT.  I believe a reduction in the VAT for these would see adaptations taking place at a much cheaper rate and ultimately lead to more being carried out.

“The Federation of Master Builders believes this initiative would create thousands of new jobs in the construction sector, including 1,500 alone in Wales.

“This initiative is an opportunity for millions of homeowners to improve their homes, reduce the reliance on cheap ‘cowboy builders’ and help achieve the UK’s legal requirement of cutting CO2 emissions by 80% by 2050.  I have no hesitation in supporting the campaign”.

ENDS / DIWEDD

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