The construction industry is to adopt a new tactic in its campaign to persuade the Treasury to reduce VAT on domestic repair and maintenance work.
Graham Watts, chief executive of the Construction Industry Council, said he would use a meeting scheduled before next year's pre-Budget statement to ask the Treasury to carry out its own review the consequences of a cut.

The meeting will be attended by construction minister Brian Wilson, Treasury officials and leading figures in the construction industry.

Watts said there had been disappointment in the industry that VAT on domestic repair and maintenance had not been reduced in this year's Budget. He said the Treasury had not trusted the industry's research, which found that a reduction in VAT would be beneficial.

He added: "Previous industry attempts to campaign for a reduction in VAT have fallen on deaf ears. That was like the tobacco industry trying to produce figures on smoking-related deaths."

The obvious response to this, he said, was "to ask the Treasury to carry out an independent assessment of the situation and then reach a conclusion".

The best way is for the Treasury to carry out its own assessment of the situation

Graham Watts, chief executive, Construction Industry Council

The decision to call for a change in approach comes after a meeting between industry leaders and Wilson.

European director of the Construction Confederation John Bromley said he was preparing an evaluation paper listing the benefits other European countries had derived from cutting VAT on domestic work.

He said: "The example of France in particular is being looked at because it has a similar economy to the UK and has successfully reduced VAT on domestic repair and maintenance work."

Wilson said it was the DTI's job to ensure that the industry was able to lobby the Treasury over the VAT issue.