Construction Confederation welcomes cut in VAT on home adaptions but says reductions don’t go far enough

The Construction Confederation has welcomed the Chancellor’s reduction on VAT for housing alterations for the elderly, but called for it to be extended to all domestic work.

In yesterday’s Budget, Gordon Brown announced that from July, VAT will be cut from 17.5% to 5% on home adaptations that support the needs of elderly people. 5% is the lowest rate available under UK EU VAT agreements.

However, a spokesman for the Construction Confederation said VAT relief across the board would be of greater help to the industry: “It's disappointing that the same VAT reduction was not proposed for all domestic repair, maintenance and improvement work which would help to establish a level playing field for legitimate contractors competing with rogue builders who avoid paying VAT completely.”

The Confederation also welcomed the Chancellor’s investment in training and apprenticeships.