VAT: Cut the VAT coalition update
| This coalition of over 20 professional bodies and trade associations, heritage and environmental NGOs - including The Alliance and some of its Members - has written to the Chancellor urging him not to press ahead with the proposal to levy VAT at 20 per cent on approved alterations to listed buildings. In a press release on 1 May, Chief Executive of the Federation of Master Builders Brian Berry explained the impact this proposal could have on the construction industry: "The Treasury has acknowledged this increase in VAT will have an adverse effect on the construction industry and we already know projects are being cancelled or curtailed. Under EU law once the zero rate of VAT has been removed it cannot be reinstated. Therefore, we are urging the Government to reconsider its decision in order to prevent a further decline in the industry at this time." Coalition members including The Alliance have also signed a joint letter to the Daily Telegraph, stating "By removing the zero rate of VAT on alterations to listed buildings, the Government is making it harder to protect our heritage. According to English Heritage research, half the people who live in listed buildings are in lower socio-economic groups. The VAT relief on alterations is usually the only incentive available to care for our historic buildings. Alterations to listed buildings require specialist craft skills, and the type of work allowed is carefully controlled through listed building consent. This increase will cause real damage to our heritage and be a further brake on the economic recovery." |

