Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of VAT reform to support repair, maintenance and retrofit projects over demolition and rebuild within the built environment sector.

VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services, including most construction work.

To support the Government’s housing delivery targets, the Government currently maintains a zero rate of VAT on new-build residential buildings. There are also several VAT reliefs supporting renovation and retrofit, including a zero rate of VAT for installations of qualifying Energy Saving Materials until April 2027, a zero rate of VAT for conversions of non-residential buildings into a residential use and reduced rates of VAT for renovating residential buildings that have been empty for at least two years and for converting buildings from one residential use to another.