Householders 'need tax incentives'
Wednesday, 19th November 2008

Ten recommendations have been put forward by the Federation of Master Builders (FMB) for the chancellor's pre-Budget report, including tax incentives for householders.

According to the FMB, the reintroduction of mortgage interest tax relief as well as an extension of a reduced VAT rate to include any maintenance or repairs on a property was necessary to stimulate the market.

Other points included the reformation of stamp duty to make it a graduated tax, reinstatement of empty property tax relief and encouragement for banks to lend to small and medium-sized enterprises to boost business.

Director general of the FMB Richard Diment said: "The chancellor must take radical action now if the building industry is to have any chance of averting the worst excesses of this unprecedented downturn."

Prior to the decision by the Bank of England to cut interest rates by 1.5 per cent, the FMB recommended a large cut of two per cent in order to combat the effects of the housing market crash.