'Cut VAT rate on refurb' call

The rate of VAT on housing alterations and renovations should be cut, according to the Construction Industry Joint Taxation Committee's 1994 Budget representation.

Cutting VAT to 5% would help smaller builders who have to compete with both non-VAT registered operators and construction's black economy, currently estimated to be costing honest firms œ13 billion a year in lost business, says the JTC.

To reduce the over-supply of commercial buildings, the JTC urges the Chancellor to zero rate properties that are switched from commercial to housing.

The JTC is also looking for changes to the way vans are taxed as they see them as an essential tool of the trade.