FMB 'opposed to VAT for new builds'
2010-04-23
Following the revelation that the Liberal Democrats may introduce a VAT charge on new build properties, the Federation of Master Builders (FMB) has voiced its opposition to the plans.The director of external affairs at the organisation, Brian Berry, said that the organisation is "totally opposed to any VAT on new builds".
"We have got housebuilding at its lowest level since 1946 and the trends are that actually this year it could fall even further," he said, adding that this is the wrong time for such a tax.
He went on to say that by adding VAT to new build housing, consumers would see an increase in cost, thereby further hindering access to the sector for first-time buyers.
However, Mr Berry did speak favourably of the Liberal Democrat plans to cut VAT on repair and maintenance work, noting that such a move would be "a great boost for small builders".
The Liberal Democrat election manifesto suggests that VAT should be equalised between new-build and repair, on an overall revenue-neutral basis.
