Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner. Facebook Messenger An icon of the facebook messenger app logo. Facebook An icon of a facebook f logo. Facebook Messenger An icon of the Twitter app logo. LinkedIn An icon of the LinkedIn logo. WhatsApp Messenger An icon of the Whatsapp messenger app logo. Email An icon of an mail envelope. Copy link A decentered black square over a white square.

Federation of Master Builders calls for VAT rate cut after fall in construction output

Federation of Master Builders calls for VAT rate cut after fall in construction output

The Federation of Master Builders called for a VAT rate cut yesterday after new figures showed a bigger-than-expected drop in construction output.

Data from the Office for National Statistics showed output fell by 2.8% in February as adverse weather affected building sites across the country.

The month-on-month drop was the second setback for the industry in recent months after a 4% output decline in November.

Economists yesterday said it was likely that activity in the sector rebounded strongly last month, but FMB chief executive Brian Berry said the industry was still in need of a helping hand.

“The latest ONS figures show there is no room for complacency about the state of the construction industry, but they do at least give cause for optimism,” Mr Berry said.

“The results for the FMB’s State of Trade Survey for the last quarter of 2013 showed a positive net balance among Scottish firms for the first time since the first quarter of 2008.

“The fall in output in February is clearly something of a blip, with very wet weather conditions playing a major role, and the longer run trend remains positive.

“However, growth of 0.3% in the three months to February is moderate, to say the least, and particularly worrying is the continued decline we are seeing in housing repair and maintenance.

“This is a sector in which the majority of SME construction firms work.

“It is key to job creation, and often a weathervane of consumer confidence,” he added.

“The Westminster Government should act now by using the power it has to levy a reduced rate of VAT on housing repair and renovation.

“It would make economic sense and could secure the still tentative recovery we are seeing.”

The impact of February’s construction figure is unlikely to have too much bearing on GDP for the first quarter of this year, with growth of 0.8% expected when figures are released later this month.