Tax Incentives For Householders Demands FMB
The reintroduction of mortgage interest tax relief and an extension of the reduced VAT rate to include all repairs and maintenance on domestic property are two of the ten recommendations that the Federation of Master Builders (FMB) is calling on the Chancellor of the Exchequer to adopt in his Pre-Budget Report on 24 November to help stimulate the building industry.
At a time when the UK economy is going through a very difficult period with house building at its lowest level since 1945 the FMB is calling on the Chancellor to adopt its ten point plan to kick help the building industry. The ten points are:
- Reduce VAT from 17.5% to five per cent on repairs and maintenance work
- Reintroduce "Mortgage Interest Tax Relief" to inject new capital back into the market
- Reform Stamp Duty to make it a graduated tax
- Abandon the proposed Community Infrastructure Levy on developers
- Encourage banks to start lending to SME businesses
- Reintroduce empty property rate relief
- Suspend the aggregate tax escalator
- Institute a programme of mass housing construction by local authorities demanding that all existing settlements increase their housing stock by between one and five per cent based on need
- Suspend reliance on the private development to deliver social and affordable housing
Introduce a section 106 agreement holiday and then subsequently cap the value of section 106 agreements.
Richard Diment, Director-General of the FMB said: "Current government proposals to kick start the building industry and the wider economy do not go far enough. There is a growing crisis in the housing market with many first time buyers unable to get a mortgage let alone afford a first home. With over 90,000 families living in temporary accommodation and 1.6 million families on council house waiting lists the need for urgent action cannot be delayed.
"More alarming is the fact that thousands of builders are going to be made redundant over the coming months unless something is done to help the building industry. 41% of FMB building firms expect to make redundancies over the coming months as they struggle to adapt to the new economic climate. The Chancellor must take radical action now if the building industry is to have any chance of averting the worst excesses of this unprecedented downturn."
(CD/JM)
