The increase in VAT from 17.5 per cent to 20 per cent from January 2011 is likely to impact on professionals working with concreting tools in a negative way, based on comments from the Federation of Master Builders (FMB).
According to the FMB, the direct impact of the VAT rise on domestic renovations and maintenance work will be a two per cent drop in work.
That could include jobs carried out with concreting tools, ranging from flooring in houses undergoing renovation to laying new driveways to replace old, cracked surfaces.
FMB director-general Richard Diment says: "At a time when the government wants to create jobs ... they have decided to bring in a policy which will have exactly the opposite effect."
However, the organisation did express its support earlier this month for government plans to ensure small to medium-sized firms can access public sector contracts, with at least a quarter of jobs due to go to more modestly sized companies in the future.
Posted by Andrew Miles
According to the FMB, the direct impact of the VAT rise on domestic renovations and maintenance work will be a two per cent drop in work.
That could include jobs carried out with concreting tools, ranging from flooring in houses undergoing renovation to laying new driveways to replace old, cracked surfaces.
FMB director-general Richard Diment says: "At a time when the government wants to create jobs ... they have decided to bring in a policy which will have exactly the opposite effect."
However, the organisation did express its support earlier this month for government plans to ensure small to medium-sized firms can access public sector contracts, with at least a quarter of jobs due to go to more modestly sized companies in the future.
Posted by Andrew Miles