FMB calls for reduction in VAT on repairs: report

The Federation of Master Builders (FMB) has issued a five point-plan to Liberal Democrat leader Nick Clegg, which it hopes will provide a fillip to the building industry, it has announced.

According to the FMB, house building is at its lowest level since 1945 and one of the five points is a recommendation to cut VAT from 17.5 per cent to five per cent on repairs and maintenance work, which could help homeowners planning to make improvements on their existing property.

Brian Berry, director of external affairs at the FMB, said that the current proposals related to the construction industry and the wider economy "do not go far enough".

Mr Berry said that with over 90,000 families living in temporary accommodation and 1.5 million families on council house waiting lists, the case for building new homes is "very clear".

Meanwhile, housing and planning minister Caroline Flint has announced new plans that will let homeowners extend their properties without the need for planning permission.