Question to the HM Treasury:

To ask the Chancellor of the Exchequer, If she will make an assessment of the potential merits of taking legislative steps to provide VAT relief on the rethatching of listed buildings.

To preserve heritage, restorative work carried out on listed buildings previously benefited from a zero rate of VAT. However, this relief was abolished in 2012, as it was primarily used to carry out extension work unnecessary for heritage purposes. Withdrawing this relief simplified VAT rules and removed the scope for error when categorising construction work as either alteration or repair.

VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s second largest tax forecast to raise £171 billion in 2024/25. Taxation is a vital source of revenue that helps to fund vital public services.

Evidence suggests that businesses only partially pass on any savings from lower VAT rates. In some cases, reliefs do not represent good value for money, as there is no guarantee that savings will be passed on to consumers.

The Government therefore has no current plans to reduce the VAT charged on work to maintain and repair listed properties, but we keep all taxes under review.