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FMB looks to Europe for VAT cut

THE FEDERATION of Master Builders has gathered a raft of European evidence for its call on Chancellor Gordon Brown to slash VAT on repair, maintenance and improvement work to 5 per cent.

The FMB has compiled figures from sister organisations across the continent including France where a VAT cut created 43,000 jobs in the construction industry, fewer cowboy builders, and a £1 billion increase in RMI spending.

In the Netherlands the VAT reduction was passed onto consumers in 77 per cent of cases, while the Belgian government said turnover and employment rocketed as a result of the move.

FMB director-general Ian Davis said: 'It is time for the Chancellor to recognise the positive effects of a VAT cut.'