Small firms seek reduction in VAT

Small builders are renewing their demands for a reduction in VAT on renovation and alteration work for all housing in the wake of the latest state of trade survey which shows no signs of economic recovery in their sector of the industry.

Dennis Maiden, director general of the Federation of Master Builders, said: 'We believe a cut in the rate of VAT for this work from 17.5% to 8% is realistic. It can be done.'

Maiden was commenting on the FMB's state of trade inquiry covering the first quarter of this year which found that inquiries are down and are not turning into orders, with margins still tight.

Repair and maintenance has declined and workload predictions for the second quarter of 1995 are not good.