The Federation of Master Builders (FMB) has urged the government to reduce the level of VAT on home improvements to five per cent.

Its call comes on the heels of the newly-released Scottish House Condition Survey (SHCS), which found that nearly one in four Scottish households were living in fuel poverty in 2005-06.

With the government's definition of fuel poverty including all homes that spend over ten per cent of their total income on heating bills, the FMB has seized on the latest SHCS report as evidence that necessary home improvements are placing an unfair burden on many low-income families.

Grahame Barn, director of FMB Scotland, said a significant proportion of vulnerable and elderly people live in "misery" during the winter months and he warned that the "current high rate of VAT on building repair work prevents people … from maintaining their homes".

The government has set a policy of encouraging homeowners to adopt green technologies such as installing insulation and on-site renewable energy generators, but few concrete subsidies have accompanied the advice.

A recent survey by Norwich and Peterborough Building Society found that four fifths of Brits are putting off making green renovations due to financial concerns.

© Adfero Ltd

Author:  Joanne McCabe

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