FMB welcomes possible VAT cut

The Federation of Master Builders (FMB) has today (Thursday) welcomed the European Commission's proposal to offer all member states the opportunity to reduce the rate of VAT on housing repair, maintenance and improvement work,.

However, it also expressed its disappointment that the proposals fall short of addressing the main concerns of the construction industry.

The proposal to apply reduced rates of VAT to domestic RMI work remains optional, not compulsory, for EU member states.

Andrew Large, FMB director of external affairs, said: "The Commission should have re-evaluated the optional nature of the reduced rates with a view to making these moves compulsory across the European Union.

"The current proposal may still give cowboy builders respite as the final decision will lie with member states.

"The FMB will continue to campaign for a reduced rate of VAT on domestic RMI work in the UK to benefit consumers, the construction industry and to support Government policy," he said.