Builders seek VAT cut as jobs are hit

Yorkshire Post - Property - - PROPERTY -

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.”

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