VAT: Building Repairs and Maintenance

Baroness Thornhill Excerpts

Wednesday 19th April 2023 Lords Chamber

[Baroness Penn (Con)]

I will always be happy to meet my noble friend and a deputation that he brings with him. I am not sure whether I will be able to persuade him of the Government’s view on this matter, but we agree on the importance of support for heritage properties. In addition to the support I previously referenced, DCMS provided £285 million for heritage in 2021-22, including £162 million to Historic England. We also have our heritage high-streets programme running until March next year and have extended the listed places of worship scheme until March 2025.

[Baroness Thornhill (LD)]

My Lords, as most registered providers of social housing cannot reclaim VAT, they are reluctant to buy VAT-elected land and resort to an inefficient process known as “golden brick” to address the conflict between themselves and the developers. There are many such conflicts and unintended consequences across the construction industry. With such a broken system, is it not time for a full review? Will the Government at least consider allowing registered providers to claim back VAT on land built for social housing?

[Baroness Penn (Con)]

On the noble Baroness’s specific point, if I may I will write to her with the details because I do not have them to hand at the moment.