The Federation of Small Businesses push for 5% VAT in construction!

It is very encouraging to that The Federation of Small Businesses is pushing George Osbourne to reduce VAT for building firms and companies.

It was reported in the sun that:

” The Federation of Small Businesses made the call last night warning the Chancellor his current growth drive “is just not working”.

The FSB wants VAT in the construction and tourism sectors reduced from 20% for a year for a year to kick start demand. Chairman John Walker said evidence from France showed any shortfall in tax would be more than mad up for by new jobs and extra spending. And he warwned cofidence across small firms was plummeting in most industries and regions of the UK.

Mr Walker said ” The economy is still in a fragile state. These figures clearly show the government growth strategy is just not working. In an economy characterised by high unemployment and muted demands, more must be done to encourage businesses to take on staff and grow”.

The FSB said 54,500 jobs were created in 12 months after France cut the building sector’s VAT in 1999″

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