VAT in the UK was reduced to 15% to help businesses during the recession, in a bid to reduce VAT further within the Building Industry the Scottish Building Federation have today rallied calls on behalf of local Scottish builders to further reduce the VAT rate in a bid to stamp out what they claim are the industries “cowboys”.

Many people feel that during tough economic times consumers looking to have building work undertaken become increasing price sensitive and a company not VAT registered may have a competitive advantage over more established firms with larger overheads. The Scottish Builders Federation has stated that they feel a 5% reduction in overheads could result in more investment from builders. The construction industry represents a huge area of the economy and employment with increased support and help this sector could be kick started out of the slumps that have hit hard during the recession. Home building and renovating has been tipped as being able to generate £80 million in home improvements so with a VAT reduction being called for will the government take heed and help this sector that many people feel has been left out in the cold with little support during these tough economic conditions. Builders across Scotland would surely benefit from any reductions that help to revitalise an industry that has suffered hard as the recession takes its toll.

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