Europe backs renovation VAT cut

The campaign to get the rate of VAT levied on renovation work reduced has been given the backing of the European Commission.

Welcoming news that the commission has declared itself in favour of trimming the rate from 17.5 per cent to five per cent for such work, director of external affairs at the Federation of Master Builders (FMB) Brian Berry said: "We have been campaigning for a cut in VAT for building repair and maintenance work for some time so are obviously delighted by this news. The rationale for a cut in VAT is irrefutable."

He added that what was needed next was UK government action on the issue.

Such a move on the cost of renovation may prompt some to consider further the possibilities of carrying out such work to their own home, with the potential to make their property more energy efficient and add value to it.

At present, the north-west of England and Wales are the cheapest places in Britain to hire a tradesman for renovation work, the Daily Record has reported.