Apparently as many as 95,000 new jobs and as much as £15 billion in savings could be on the table between 2015 and 2020… as long as George Osborne takes note of a new report and changes Britain’s draconian VAT laws.
More jobs, more savings, less CO2
The independent study by Experian also revealed that 240,000 fewer tonnes of CO2 would be emitted as a result of the proposed VAT cut. Their study is backed by over 60 charities, business networks, trade associations and financial services institutions, all united in their call for politicians of every party to agree a VAT reduction in their General Election manifestos for 2015.
VAT reduction theory
The theory goes like this. A VAT reduction on housing renovation and repair should empower ordinary people to contribute to Britain’s economic growth, generate more jobs and create greener homes, all without help from the struggling Treasury, thus putting a lower burden on the public purse. The research’s predicted £15 billion in new economic activity is so large it completely overshadows the Treasury’s VAT losses.
What about EU law?
Many people simply assumed EU law prevents the British government from reducing VAT on housing renovation and repair. But in fact almost half EU member countries already benefit from VAT reduction strategies, so why not us?
Genuine long-term economic gains
The report shows a VAT reduction from 20% to 5% on housing-related repairs brings real long terms gains for the economy, employment and carbon reduction. Which looks like a classic win-win-win situation. The pressure is on. Let’s hope our politicians see sense.