Tax cut could prompt conservatory constructions

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MSPs from the Scottish National Party and Labour are set to call for tax cuts on certain home improvements, which could lead to the construction of more conservatories. 

According to the Scotsman.com, the politicians want George Osborne to reduce the levy from 20 per cent to five per cent on extensions, household repairs and conservatories.

Michael Levack, chief executive of the Scottish Building Federation, pointed to a similar spending stimulus on the Isle of Man as evidence that such a strategy can prompt activity; ultimately boosting tax received by the government.

If the tax rate as cut to five per cent, then it could take £1,500 off the cost of building a conservatory and fitting conservatory blinds; with even larger savings to be made on more significant extensions or conversions.

Levack added: “It would give many building employers the confidence they need to be able to recruit and retain more apprentices.”

The tax on home improvement is not the only levy being looked at by Scottish politicians, with BBC News reporting that the government has considered altering corporation tax.

Academic Graham Gudgin reportedly told the Scotland Bill committee that the country is very unlikely to be given the power to control the levy in the short term, but it could be an option in the long term – particularly if Northern Ireland is successful in its bid to do so.