Sir, Let us hope that EU finance ministers will follow the UK Government’s lead in supporting the European Commission’s initiative calling for a reduction in VAT for some labour intensive services on a permanent basis when they meet on November 4 to discuss amending the VAT Directive. Such a decision would help to pave the way to cut VAT in the UK from 17.5 per cent to 5 per cent for all repairs and maintenance work to existing buildings.

Anyone doubting the economic argument of a cut in VAT need only look at the results of the EU experiment to cut VAT in certain parts of Europe. On the Isle of Man, where VAT was cut by 12.5 per cent, the actual tax intake increased; in France, it resulted in the creation of 43,000 new jobs in the construction industry; and in Italy the measure saw the creation of between 65,000 and 75,000 new jobs in the construction industry.

Cutting VAT across the EU would do much to promote wider environmental and social benefits, not least in helping to meet the EU’s carbon emissions targets. Given the economic, social and environmental benefits that a cut in VAT would bring it makes no sense for any EU country to be hesitating when the EU could be showing a strong lead to helping to improve the lives of its citizens. Hopefully, our EU partners can be convinced and deliver what we expect of them.

John Alker
Public Affairs Manager, UK Green Building Council

Louis Armstrong
Chief Executive, Royal Institution of Chartered Surveyors (RICS)

Henry Aubery-Fletcher
President, Country Land and Business Association

Liz Peace
Chief Executive, British Property Federation

Sunand Prasad
President, Royal Institute of British Architects (RIBA) and Senior Partner, Penoyre & Prasad LLP

Ron Storer
President, Federation of Master Builders

Jim Allister MEP
Democratic Unionist Party, Northern Ireland

Dave Anderson MP
Labour, Blaydon

Michael Ankers
Chief Executive, Construction Products Association

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