Bates lobbies for VAT cut to stimulate a sustainable economy in Wales (Montgomeryshire Liberal Democrats)

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Montgomeryshire Liberal Democrats <montlibdems@gmail.com>

Bates lobbies for VAT cut to stimulate a sustainable economy in Wales

November 25, 2008 12:00 AM

Montgomeryshire AM Mick Bates has called on the First Minister in the chamber to back the Federation of Master Builders in their call for a lowering of VAT on building repair and improvement work to existing buildings, to help revitalise the economy and help the poorest households in Wales.

Commenting in the chamber Mick stated:

"The Government's pre-budget announcement includes a cut in VAT of 2.5%, which will cost the exchequer £12.4billion. But with VAT not payable on essentials like food and clothes, this is unlikely to help many middle and low income families who are struggling to keep their head above water.

"A better way to stimulate the economy and put money back in people's pockets would be to give a reduction in VAT to 5% on building repair and improvements to existing housing. This would enable families to retrofit micro-generation technologies on their homes, saving people money on their fuel bills and reducing carbon emissions, as well as providing valuable green job opportunities in the micro-generation sector.

"In a time of economic downturn, with fuel poverty bringing misery to households across the country, it is time for the Welsh Assembly Government to take action to build a more sustainable economy in Wales. I have urged the First Minister to lobby Westminster for a reduction in VAT for work on building improvements, which would not only benefit our economy today but in the future as well."

Ends/Diwedd

Notes:

OPIN-2008- 0076 - VAT on Building Repair and Improvement Work to Existing Buildings

Raised By:

Kirsty Williams

Subscribers:

Leanne Wood 17/10/2008

Peter Black 21/10/2008

Trish Law 21/10/2008

Jenny Randerson 23/10/2008

Mike German 28/10/2008

Huw Lewis 28/10/2008

Mick Bates 18/11/2008

VAT on Building Repair and Improvement Work to Existing Buildings

This Assembly supports calls from the Federation of Master Builders for a reduction in the rate of value added tax (VAT) from 17.5 % to 5 % on building repair and improvement work to existing buildings;

believes cutting VAT will help bring thousands of empty homes back into use across Wales;
believes that cutting VAT would enable thousands of families to upgrade their homes to make them more energy efficient,
believes that cutting VAT will significantly reduce cowboy builders commercial advantage;
Calls on the UK Government to reduce VAT for building repairs and improvements.