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Federation of Master Builders wants Government to cut VAT on repair work
THE Government must cut VAT on renovation and repair work to boost its Green Deal, a building body has warned.
The Federation of Master Builders (FMB) says ministers have to market its energy policies to people after the Department of Energy and Climate Change revealed changes to improve its energy efficiency scheme.
It says the Government should look at cutting VAT on housing repairs, rather than increasing local authority incentives, and wants more help to allow companies to train workers.
Brian Berry, FMB chief executive, said: “It is clear the Government recognises the Green Deal has so far not delivered and requires significant changes to successfully engage home owners and installers.
“However, the changes do not go far enough and there are two fundamental elements missing from the changes.
“Those behind the Green Deal need to look at how to encourage and support more small and medium-sized businesses installer firms to take up training so they become qualified to deliver improvements as certified installers.”
Mr Berry also said the increase from £20m to £80m for local authority Green Deal cash was welcome, a better financial incentive would have been to reduce VAT.
He said: “A reduced rate of VAT for housing renovation and repair would have a positive impact across the board.
“It would incentivise those who want to engage with the Green Deal, but also those who want to pay for the work upfront.
“We are extremely concerned with the direction of Government policy in relation to energy efficiency.”
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