Sefton Central Labour MP Bill Esterson is supporting the Federation of Master Builders (FMB) with its campaign to cut VAT on home repair, maintenance and improvement work.
The MP believes a cut from 20% to 5% would reduce the competitive advantage of rogue traders and help rescue many legitimate local firms from the brink of collapse.
Bill Esterson MP said: “This campaign has my full support. Dozens of small and medium sized businesses in Sefton Central would benefit considerably from a VAT cut on home repair, maintenance and improvement work.
“It would make important home repairs more affordable and help protect consumers from cowboy builders who currently flourish by evading VAT.
“This is a logical step to help boost the local economy and the government should get on and do it as a matter of urgency.”
Brian Berry, Director of External Affairs at the FMB said: “We are delighted that Bill Esterson MP is supporting the Cut the VAT campaign and we would like to see others to follow suit.
“We hope Bill can help us persuade the government to recognise the important contribution construction makes to the economy, and to help struggling businesses in Sefton and elsewhere.
“The government knows the construction industry is currently very weak. Since the recession hit small construction businesses have had to cope with falling demand and greater instability.”
Mr Berry continued: “The rise in VAT to 20% has had a major impact by driving customers towards inefficient builders. The FMB’s campaign to cut VAT to 5% on all home repair, maintenance and improvement work has now gathered the support of almost 50 different organisations, representing hundreds of thousands of businesses and citizens. Independent research commissioned by the Cut the VAT campaign last year also reveals a long list of benefits tied to this specific VAT cut, including more protection for homeowners. Therefore, we hope the government will act swiftly to help get the economy back on track.”