Leeds and Manchester are just two examples of cities in the north of England that have been regenerated; the same is happening to cities such as Liverpool, Bradford and Sunderland.

Many of our towns and cities are blighted by poor quality housing, an abundance of empty properties and decaying local heritage; this situation is exacerbated by the 17.5 per cent rate of VAT charged by the Government on maintenance and home improvement work.

The high rate of VAT makes it too expensive for many owners to maintain or refurbish their home and encourages neglect; leading to demolition and new build.

Moreover, the financial disincentive to repair and maintain buildings caused by the high rate of VAT is often the root cause that allows homes to fall into disrepair in the first place. The resulting vacancy and dereliction blights whole neighbourhoods, depresses property values and attracts crime.

Conversely, the regenerative effect on the street and the wider neighbourhood of reusing empty property can be striking. Bringing empty buildings back into beneficial use, in our towns and cities, is an essential part of sustainable development and improving people's quality of life.

The Government needs to work a lot harder to join up its housing, regeneration, environmental and fiscal policies.

The heritage of our great towns and cities is also threatened by the
VAT burden that repair and maintenance work carries. Historic buildings will continue to be lost to modern development unless the costs of maintenance can be reduced.

The proper maintenance of our historic buildings encouraged by a reduced rate of VAT on maintenance and repair work will support and in many cases help to restore civic pride in the local environment.

Unlike Policy Exchange the FMB believes in a positive future for our towns and cities. We would like to work with the Government to regenerate our great conurbations.

But before any of this can happen it is vital that the Government cut VAT from 17.5 per cent to five per cent on all maintenance and home improvement work.

BARRY OLIVER
Northern Regional Director,
Federation of Master Builders,
4 Hutton Terrace,
Newcastle upon Tyne.

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