VAT ON WORKS TO EXISTING SOCIAL HOUSING

Early day motion 306, tabled 24 October 2001 by Kerry Pollard (Labour). Signed by 110 members.

That this House welcomes the Chancellor's announcement in the Budget that VAT on residential conversions will be reduced to 5 per cent., but understands that this will affect only 1,000 social housing properties each year; notes that reducing VAT to 5 per cent. for all works to existing social housing would cost around ú140m; further notes the National Housing Federation's estimates that the increased tax-yield from stimulating construction industry activity would bring the net cost to Government to less than half this figure; believes that a 5 per cent. VAT rate for works to existing social housing would help to achieve the Government's stated aim of bringing all social housing to a decent standard by 2010; and urges the Chancellor to include this measure, which is permitted under the Sixth EU VAT Directive, in his Pre-Budget Report and the Spring Budget statement.

Signatures by party: Labour 80, Liberal Democrat 17, Labour/Co-operative 7, Conservative 2, Plaid Cymru 2, Independent 1, UUP 1.