The Specialist Engineering Contractors' (SEC) Group has enlisted the Engineering Employers Federation (EEF) in its call for a reduction in the rate of vat charged on domestic repair, maintenance and improvement work.
In its pre-budget statement to the Chancellor of the Exchequer, the EEF states that a reduction from 17.5% to 5% would both encourage fair competition within construction and have a positive effect on manufacturing.

"Reduced vat will provide a substantial incentive to improve the domestic housing stock, including the upgrading of energy efficiency in houses," says the EEF. "This, in turn, will increase the demand for manufactured products, components and systems."

The SEC Group has also been able to persuade the EEF to argue its corner concerning enhanced capital allowances. "These rules should be broadened to include expenditure on energy saving equipment for business purposes not classified as plant and equipment," says SEC Group chief executive Rudi Klein.

The SEC Group argues that office lighting and management initiatives such as energy audits should qualify for allowances under the Climate Change Levy.

Source

Electrical and Mechanical Contractor