BPF joins coalition calling for a cut in VAT

The British Property Federation (BPF) has joined calls for a reduction in the rate of VAT charged on home improvements.

Ahead of this afternoon's (March 24th) Budget, the organisation has backed the Cut the VAT Coalition, in its call for the rate to be reduced from 17.5 per cent to just five per cent.

According to the coalition, the cut would help create a significant number of jobs and contribute billions of pounds to the UK economy.

Alan Collett, residential chairman at the BPF, said: "A reduced rate of VAT to five per cent on repairs, renovations and management fees would be of huge benefit to the private rented sector, levelling the playing field between those who use VAT and non-VAT registered traders and stimulating improvement in the sector's stock."

The coalition claimed the reduction would create more than 50,000 jobs in construction and other sectors.

Another benefit would be a reduction in the number of "cowboy" builders operating in the sector, the organisation claimed.

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