A Vote in the European Parliament to add housing repairs and maintenance to the sectors where a reduced rate of VAT can be applied has been welcomed by Manchester's Shadow Executive Member for Housing, Councillor Iain Donaldson.
The reduced rate has to be at least 5 per cent, but member states are not allowed to drop the full rate below 15 per cent.
Cllr Donaldson stated that "Liberal Democrats have been campaigning since before this Government was elected for a VAT-cut in repairs and maintenance to 5 per. This move is long overdue and will finally put renovation of housing stock on an equal footing with new-build."
"In the current economic climate, this move may also help to revitalize struggling industries such as construction, and increase work to improve the energy efficiency of buildings because it would enable homeowners to make those crucial changes to their homes, create jobs, particularly for small businesses and also help reduce fuel poverty.
Cllr Donaldson added that "With over 28,000 people on waiting lists for housing in Manchester and thousands of construction industry jobs in peril in this country, the Government must act fast to implement this change. Unlike the 2.5% untargetted drop in VAT which had virtually no impact on the economy, this targeted drop of 10% for repairs and maintenance will have a significant impact on the economy."
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