A VAT reduction on housing renovation and repair could boost the UK economy by more than £15 billion from 2015 to 2020 according to a new independent research report by Experian.
This reduction could also create more than 95,000 jobs and save 240,000 tonnes of Carbon dioxide (CO2) from thousands of homes.
The report was launched at an event in Parliament, where Phil Voice and members of the Landscape Juice Network heard calls for a commitment by all three main political parties to include a cut in VAT in their 2015 General Election manifestos.
Phil Voice, managing director and founder of the Landscape Juice Network, said: "A reduced level of VAT levied on landscaping projects will not only help hard-pressed landscaping companies compete with non-registered businesses it will incentivise home owners to spend, drive new business and help kick-start spending in the economy.
"As an industry we need to drive the message home to ministers that landscaping - worth over £7 billion a year - plays an important part in the UK's economy.
"The Landscape Juice Network is leading the campaign to include landscaping in the Cut the Vat campaign and hopes that others will get behind our efforts to promote the the benefits of landscaping and industry to government," Phil Voice, pictured right, said.
"I hope by being able to get our message across at this important meeting it will give us the opportunity to persuade the building industry that landscaping can also help to sell house and improve their offering to home buyers."
The report by Experian is backed by more than 60 charities, trade associations, business groups and financial institutions, including the Federation of Master Builders and representatives of glazing, roofing and crafts based industries.
Brian Berry, chief cxecutive of the Federation of Master Builders (FMB), said: "A VAT reduction on housing renovation and repair work will empower home owners to contribute to growth, jobs and greener homes without placing a burden on the Treasury.
"There is no other proposal that will help the UK achieve so many of its economic, environmental and social aims with so little cost to the public purse. This research shows that the wider benefits of a VAT reduction on housing renovation and repair would stimulate more than £15 billion of wider economic activity, which completely overshadows any direct losses to Treasury coffers due to a drop in the percentage charged for VAT."
Berry added: "It is a myth that EU law prevents the UK government from reducing VAT on housing renovation and repair. This research report clearly shows that almost half of EU member states are currently enjoying the economic, environmental and social benefits that this VAT reduction can bring. Why should the UK not follow suit?"
Nigel Rees, chief executive of the Glass and Glazing Federation, said: "We are impressed with this research report and urge the government to now take the necessary action.
"As the report shows, reducing VAT from 20% to 5% on housing renovation and repair has significant long terms gains, not only for economic growth and job creation, but also for carbon reduction, as many contemporary home improvements will include the installation of energy efficient products."
Ray Horwood, chief executive of the National Federation of Roofing Contractors, said: "There are a range of complementary reasons for this sensible reduction in VAT on housing renovation and repair that play to government objectives and overall consumer expectations.
"The strong leadership message this sends to all political parties would, in addition, be a boost and clear message of support to the responsible and qualified SME firms that will undertake this work."
Mike Brown, chair of the Institute of Historic Building Conservation, said: "The care and maintenance of our heritage buildings is often crafts-based and, as such, labour intensive, so a reduction in VAT will help support those skills and thousands of jobs across the sector.
"The case for the reduction in VAT is particularly important in making the difference between a historic building being saved or being unviable."
Brown added: "On top of that, more affordable day to day care and maintenance would help save countless older buildings from the destructive and costly cycle of decay and restoration, allowing diminishing resource to be directed towards delivering better informed energy conservation measures, compatible with the fabric of the building."
To read Experian’s research report “An estimate of the effects of a reduction in the rate of VAT on housing renovation and repair work: 2015 to 2020” in full please see here (.pdf).
And for more information visit the Cut the VAT Campaign website.
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I travelled into London with Gary RK, meeting Graeme at Waterloo station. After a bite to eat we walked to Westminster.
We arrived at the gates of parliament about 5.45pm so with plenty of time before the Cut the Vat Coalition meeting, Gary Graeme and I took ourselves off for a tour of the House of Lords and the House of Commons.
It was really interesting sitting high above both chambers witnessing debate, especially as the debate in the House of Commons was on Managing Flood Risk.
About 150 invited coalition partners piled onto (into?) the House of Commons Terrace for nibbles and wine before Loyd Grossman opened up the proceedings with a very passionate speech on why the UK should follow 16 other countries and slash Vat on building renovation. (more on this later).
As the speeches got under way, Craig coordinated the LJN media release to coincide with the official Cut the Vat media release, which had been embargoed up until 7pm.
Once we had heard speeches from MP's, the LJN team were introduced to Brian Berry, the Chief Executive of the Federation of Master Builders.
I was particularly keen to make sure that the landscaping industry should be included within the Cut the Vat coalition campaign.
Explaining to Brian why it was important for landscaping to be included I mentioned that the landscaping industry was 'the forgotten industry'. Brian's response was, 'yes it is'. Having realised what he'd said, and not wishing to cause offence, Brian said he hadn't meant his comment it as it sounded.
Far from being offended, the LJN team nodded and replied in full agreement and I think it underlined how important it is for us to be there to represent the landscape industry and get the ball rolling troward being included in any future plans.
(image: left to right Graeme Mann, Brian Berry, Phil Voice)
Thanks Andy:)
More photos here: https://www.flickr.com/photos/fmbuilders/sets/72157641860525733/
Good stuff.. excellent work.
We even made page one on Flicker! :-)
Whilst I don't think we will see the VAT reduction in the forthcoming budget (well you never know) I am confident that land based companies and individuals had their voices heard last night and that the FMB acknowledged LJN as a unique association and one that is rapidly growing and leading the way of most other trade organisations particularly with the way LJN embraces social media and the web. Something that they themselves are keen to replicate.
Well done Phil for making the stand and getting our message across.
It is also worth noting that LJN has been a member of the 'Cut The Vat' campaign for over a year, working to get our views known and accepted by those that matter.
Again, thanks to Phil for his tireless efforts in representing the face of the SME Landscaping Practitioners.
Roll on next step. I'm ready....
well done guys
Thanks Matt & Neal:)
Thanks Graeme.
I thought the comment made to us - when it was explained how fast growing and engaged LJN is - about how trade associations were dying, re-enforced my (our) view that LJN is in the right place.
Graeme @ BGS said: