黑洞社区

The RIBA has hit out hitting at government proposals to abolish VAT relief on listed building alterations.

The RIBA said the proposal 鈥� which would change the current zero rate to the standard twenty per cent rate of VAT and was announced in the Budget last week 鈥� could make necessary upgrades to listed buildings 鈥渦naffordable鈥� and would 鈥渁lmost certainly鈥� have a detrimental effect on the number of heritage projects undertake.

RIBA conservation group chairman Robert Franklin said: 鈥淭here is a real concern from the RIBA that the planned increase from zero to twenty percent VAT for alterations to listed buildings could have a debilitating economic impact on development in the historic environment.  

鈥淲hilst VAT may discourage some inappropriate proposals, I fear a 20% rate, so suddenly applied, will make it unaffordable for listed building owners to make necessary alterations to many of our cherished buildings, whether for correcting past mistakes or bringing up to date for new uses.  

鈥淭he economics of such schemes may increase the number of buildings 鈥榓t-risk鈥�, through pressure to demolish and replace with new-build, particularly for housing which remains zero rated.

鈥淒ue to the speed of the proposed VAT change we are particularly concerned that those schemes deemed viable based on the zero rate may suddenly become non-viable, and not go ahead.鈥�   

Labour MP Tristram Hunt also joined in the criticism, calling the plan a 鈥渞eal error鈥�.

He told the Commons: 鈥淭he decision to remove the zero rate of VAT on approved alterations to listed buildings is a real error.

鈥淲hen that is combined with forthcoming planning reforms, it speaks of a government with little feel for the natural and historic environment of this country.鈥�

Last week, Noble Francis, economics director of the Construction Products Association, told 黑洞社区 the proposed move would hit a niche part of the construction industry already suffering since the recession.