The Liberal Democrats proposal to introduce VAT on new homes

“We are extremely surprised that the Liberal Democrats would make such an ill conceived policy suggestion. For many years the housebuilding industry has been working closely with government and treasury officials looking at the implications of such a move and it has always been accepted that it cannot be implemented. Introducing VAT at any level would fatally damage the housebuilding industry at any time and its ability to deliver much needed new homes in the UK.

“This is an example of a lack of understanding of the importance of the housebuilding industry in the UK and of the significant tax and legislative burden that the industry already carries.”