Is cutting VAT the way to salvage the government’s Green Deal?

The UK’s leading building organisation has labelled the government’s green homes policy as “inadequate” and more energy incentives and VAT cuts are needed.

The Federation of Master Builders have declared that the coalition government’s plans to offer loans to support green homes are “inadequate” and cutting VAT to 5% would achieve this and create new jobs in the construction industry.

Brian Berry, the director of external affairs at the FMB, said in a statement that reducing VAT would boost the job market and create more jobs from the government’s Green Deal.

Mr Berry said that “a reduced rate of VAT to 5 per cent for all energy efficiency improvement projects would provide a boost as well as create much needed jobs in the building industry.”

On the subject of the Green Deal, Mr Berry said:

“The government has promised thousands upon thousands of new construction jobs as a result of the Green Deal, but unless homeowners are given the best possible deal on their improvements this flagship policy risks falling at the first hurdle.”

Train4TradeSkills spoke to Brian Berry last November about this issue, when the Federation of Master Builders were launching their “Cut the VAT” campaign. Mr Berry told us back then that by cutting the rate of VAT 24,000 extra construction jobs would be created in 2011 and a further 34,000 construction jobs by 2019.

These changes proposed by the FMB would create additional jobs for electrical, plumbing and gas contractors but, to be honest, I cannot see the government backing down and cutting the rate of VAT to 5% any time soon, until we get out of this current financial crisis. I do agree that incentives need to be offered to fully capitalise on the Green Deal to create potentially millions of construction jobs.

What do you think? Is it likely that the government will cut VAT for the Green Deal? Let us know on the Train4TradeSkills Facebook and Twitter pages.


About Train4tradeSkills

Train4TradeSkills offer the only trade training skills courses that combine three great ways to learn, through a unique blend of book based theory, practical workshops and virtual reality PC based training, to help you qualify you as a plumber, electrician or gas engineer. No other learning provider offers our unique way to study, with full tutor support, easy to follow, step by step modules. Once you complete one part of the course and return your work for marking, the next stage of the course automatically follows. It’s as easy as that. It’s fun, it’s easy to follow... and it can be fitted around your existing work and family commitments!

Posted on February 23, 2011, in electrician, electrician courses, electrician jobs, plumbing, plumbing courses, plumbing jobs, train4tradeskills and tagged , , , , , , , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

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