FSB calls for help for the construction industry
Construction
20th May 2009
A change to the VAT regime would help to reduce the number of jobs being lost in small construction companies, the Federation of Small Businesses (FSB) has claimed.
The organisation has joined forces with the Federation of Master Builders to lobby the government to cut the rate of VAT levied on home renovation projects to five per cent.
A survey carried out by the FSB found that 59 per cent of building firms had experienced a downturn in demand in the past six months and that more than a third feared they would struggle to survive the recession.
John Walker, the FSB's national policy chairman, said cutting VAT on home renovations to five per cent would give homeowners an incentive to use small building firms and help to safeguard their future.
He added: "With more than 300,000 jobs in the sector under threat during the recession … the construction industry needs support today."
Meanwhile, people attempting to make a living from property development have been reminded about the importance of complying with regulations, such as taking out the relevant insurance for business.
In a letter to the Hunts Post, Simon Longbottom of the Health and Safety Executive said many people new to property renovation did not realise they have certain legal responsibilities.
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