CBI Urges Budget Refurb Commitment

13th March, 2013

The CBI has urged the Chancellor to use the Budget to boost the housing market to build confidence among businesses and consumers. Given its social and economic benefits, the CBI is arguing that housing should form the main plank of this month's Budget. Among its proposals are measures benefitting first and second-time buyers, support for householders refurbishing homes and for smaller house builders struggling to access finance.

The CBI has also called for chancellor to reduce VAT on refurbishment work as part of a £2.2bn package of measures to boost construction and would cost the exchequer £500m but create 80,000 jobs. Encouraging refurbishment of existing houses though tax cuts or subsidies on renovation and repair work would help bring empty homes back into use.

The CBI says the proposals should form part of a fiscally-neutral Budget which would shift £2.2 billion from current spending to high-growth areas. This would include £1.25 billion on capital investment - including housing - and £950 million on high-growth business tax measures, such as a 2% cap on the planned increase in business rates and the removal of Stamp Duty on equity finance for mid-sized companies.

John Cridland, the CBI Director-General, said: “The Government must stick to its fiscal plan but now is the time to kick-start confidence. Our measures will provide another boost for the housing market and will benefit first-time buyers, those trapped in negative equity and those looking to refurbish their homes. To boost the construction sector, we are calling for 50,000 new affordable homes to be built, incentives for refurbishing empty homes and the housing guarantee scheme to be extended to all types of housing.

We must supercharge the NewBuy scheme to allow second-time buyers struggling to get on the next rung of the property ladder. With its relatively short lead-in times, house building offers the most bang-for-buck in growth terms - unleashing pent-up demand, while creating jobs and growth.”

The CBI is also calling on the Government to bring forward its road spending and repair programme, as well as strengthening support for exporters and for smaller firms struggling to access finance.

For more information visit: www.cbi.org.uk/media-centre/press-releases

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