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A plea to cut VAT by 12.5% on house improvement and renovation costs has been made at the Scottish Parliament by SNP MSP Christine Grahame. Her call was backed by Alex Neil, the Scottish Communities Minister, who also urged the Chancellor to give serious consideration to the proposal which would help stimulate an economic recovery locally in the Borders. Speaking during a special debate on rural housing at the Scottish Parliament this week Ms Grahame said:
“In his speech, the minister made a plea for a reduction in VAT on house improvements from 17.5 to 5 per cent. That is an excellent idea, because a lot could be bought with the money saved. Many houses in the private sector and the public sector need upgrading, but many people just cannot take on the work. Such a reduction might also put an end to the black economy, where people try to get work done with paying VAT on it.”
Ms Grahame also welcomed the accelerated funding that the Scottish Government brought forward which will stimulate the local building sector and deliver more affordable homes to the Scottish Borders. Ms Grahame added:
“I thank the Communities Minister for the accelerated funding to three house-building programmes in the Borders area. Tweed Homes, a Peebles-based construction company, benefited from accelerated funding to build 29 new affordable homes in Galashiels, safeguarding 120 construction jobs, many of which are local.
“That did not just happen. Apart from working with the Government and myself, the company worked with Eildon Housing Association and the local authority, which sped up the planning process. It can be done. M & J Ballantyne of Kelso also benefited from the accelerated programme; 22 houses are being built and it is protecting 100 jobs. In Penicuik, £720,000 went to Melville Housing Association and 10 new affordable homes are being built.
“That accelerated funding buys a lot for a little amount of bucks. It does not just provide rural social rented or affordable homes; it keeps rural jobs there, keeps spending money in the local economy and maintains the skills base locally, which, no doubt, would have dispersed to where the contracts were.”
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