Cut The VAT To Save Jobs And Skills, Scottish Business Leaders Urge

Scottish business leaders have thrown their weight behind building firm Rok’s campaign to save jobs and skills in the construction industry.

With new Chancellor George Osborne due to announce his Emergency Budget on June 22, the Scottish Chambers of Commerce, the Federation of Small Businesses Scotland and the Scottish Council for Development and Industry have backed Rok’s ‘Repairing Scotland’ drive.

The campaign calls on the UK Government to cut VAT on repair and maintenance work to 5%. The move would safeguard jobs and skills in the building trade by making renovation work more affordable and causing a surge in demand. A paper and online petition has already collected more than 6,000 names.

The move was supported by the Liberal Democrats in their election manifesto and prominent backers include new Energy and Climate Change Secretary Chris Huhne.


The campaign has already received the support of the Scottish Government and the Scottish Building Federation.

Rok Scotland’s Managing Director, Andy Mallice, said: “The UK’s economic recovery remains extremely fragile and without firm action we could yet see more jobs and apprenticeships lost in the building industry.

“The new government has a golden opportunity to help safeguard these jobs and skills in its upcoming Emergency Budget.

“By cutting the rate of VAT on repair and maintenance work, we can ensure Scotland retains jobs now and continues to build a strong skills base for the future.”

Liz Cameron, Chief Executive of the Scottish Chambers of Commerce, the umbrella organisation for 20 local chambers representing more than 50 percent of private sector jobs in Scotland, said: “Scottish Chambers of Commerce has long argued for a reduction in the rate of VAT for repair and maintenance work.

“Such a move would incentivise investment in Scottish construction projects and deliver a welcome shot in the arm to a sector which has experienced the most prolonged effects of the recession.”

A survey by the Scottish Building Federation (SBF), published in March this year, suggested that the number of apprentices in training this year could fall by a staggering 51%. Previous SBF findings indicate that more than 1,000 construction apprentices lost their jobs in 2009.