§ 14. Mr. Nicholas Wintertonasked the Chancellor of the Exchequer what representations he has received on his decision to bring house extensions and alterations within the scope of value added tax.
§ Mr. Ian StewartMy right hon. Friend has received representations from many trade bodies engaged in the construction industry, from individual firms and from members of the public.
§ Mr. WintertonI am grateful to my hon. Friend for that reply. I appreciate that the Government are aware of many of the complications that that proposal will bring about. Will he accept from me, as a person who has worked for many years in the construction industry, that the proposal to bring house extensions and alterations within the scope of VAT is likely to increase the black economy and encourage the cowboys within the building industry, which, sadly, will be to the detriment of the qualified registered builder, who is desperately in need of work?
§ Mr. StewartMy hon. Friend's anxieties are not justified. The construction industry is experiencing rising output and is participating strongly in the recovery. Irregular operators and cowboys had much more scope in the days when it was possible to classify repairs and maintenance as zero rate alterations than they will have under the new regime.
§ Mr. Kilroy-SilkHow many further jobs in the construction industry, especially on Merseyside, will be lost because of the extension of that tax?
§ Mr. StewartI shall not speculate about the effect on jobs in particular industries or particular areas. I do not doubt that the Budget as a whole, considering all the measures for companies and individuals, will assist the economic recovery, and that is the best way to look after future employment.