Builders seek VAT cut as jobs are hit
MORE than one in five small building firms report is being forced to cut jobs as a direct result of last year’s VAT increase to 20 per cent. In addition, more than half of these small businesses reported falling workloads as a consequence of the VAT hike.
The Federation of Master Builder’s (FMB) latest State of Trade Survey is campaigning for a cut in VAT.
Brian Berry of the FMB says: “The FMB warned the Government at the time that raising the rate of VAT to 20 per cent would suppress demand for building work and cost jobs. Unfortunately our prediction has been borne out by our latest research which shows that the VAT increase is hurting the very small businesses.”