In the week of the 50th anniversary of the Green Belt Mid Sussex MP, Nicholas Soames, has called on the Chancellor to harmonise the VAT imposed on new builds and renovated properties to help protect the Green Belt and maximise Brownfield development.

Mr Soames said; “Last month I questioned the Chancellor over the current VAT regime which discourages developers from renovating existing properties. By harmonising the levels of VAT on new builds and renovated properties this would immeasurably relieve some of the pressure in Mid Sussex and West Sussex and add further protection to our heritage.”

Written Parliamentary Question answered 11th July 2005:-

Nicholas Soames MP: To ask Mr Chancellor of the Exchequer, if he will take steps to harmonise the VAT imposed on new builds and renovated properties.

Dawn Primarolo MP, Paymaster General: While agreements with our European partners allow us to keep our zero rates as they currently stand, we cannot extend them or introduce new ones. This means that in order to harmonise the rates of VAT on all building work and renovation, we would first have to give up our current zero rates for construction, including those for the construction of new charity buildings and new housing, and for approved alternations to listed buildings. While we continue to keep the impact of VAT on different types of building work under review, we have no plans to give up our existing construction zero rates.

Mr Soames has congratulated the CPRE on its campaign to protect the Green Belt which is threatened by the Government’s plans for massive housing growth in the South East.

Notes to Editors

Information on the CPRE Green Belt Campaign can be obtained at:-www.cpre.org.uk