Businesses will face a further blow to competitiveness after the Chancellor, Gordon Brown, announced a rise in the climate change levy in his 10th budget speech. And despite the environmental theme of this year's budget, there is no sign of VAT incentives.

The levy, paid by companies on their electricity bills, has been 0.43p per kilowatt hour since its introduction in 2001 and is set to rise in April 2007.

Federation of Master Builders Director of External Affairs Andrew Large: ‘Yet again, the Chancellor has ignored the strong case for a reduced rate of VAT for domestic building work. In doing so he has passed up the chance to increase the supply of affordable homes and support the drive for better construction standards.'

Campaign to cut VAT

The FMB has set up an online petition at www.cutthevat.co.uk urging every homeowner to put pressure on Gordon Brown to meet the 31st March EU deadline to get approval to cut VAT on building work.

In February some EU member states agreed to allow lower VAT rates on repair, maintenance and improvement work until 2010. While several countries already benefit from these lower rates, UK homeowners still pay 17.5%.

Source

Glass Age