The FMB, in partnership with the Royal Institution of Chartered Surveyors (RICS), commissioned CBI Economics to assess the economic impact of a temporary cut on VAT on housing repair, maintenance and improvement (RMI) works. They analysed the impact of a reduced VAT rate of 5% over a five-year period from 2021 to 2025.
We have been part of a coalition campaigning for the Government to cut VAT on home improvements for more than five years, but in the context of the UK’s departure from the EU, and the need to support the economy to build back better and greener from the impact of the coronavirus pandemic, the FMB is renewing its call.
Analysis shows that a temporary five year cut would generate an economic stimulus of £51 billion, and unlock 345,000 jobs, in construction and the wider economy.
