RICS says Chancellor should cut VAT on home refurbishments to help residential sector

The Royal Institution of Chartered Surveyors has called for a cut in VAT on the refurbishment of homes to boost the economy.

In its pre-budget submission to the Treasury, it said the economy could be stimulated by boosting the construction industry through a cut in the tax, which rose from 17.5% to 20% at the beginning of the year.

Mark Goodwin, RICS director of external affairs, said: 鈥淭his Budget provides the Government with a chance to encourage growth and innovation in construction and property, providing much needed jobs, tackling the housing shortage and ensuring that businesses have a continuing supply of high quality premises. With housebuilding at a desperately low level, it is essential that the Government takes steps to attract investment into the residential sector.鈥�

It also raised concerns that the public sector needed to hold on to its best workers in order to meet targets to make savings through greater efficiency.

Goodwin continued: 鈥淭he success of the Government鈥檚 emerging strategy on public sector property asset management will depend in no small measure on attracting, retaining and developing talented professionals.鈥�

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