§ Mr. Sydney Irvingasked the Secretary of State for the Environment what sum of money would be necessary in present-day terms to secure a similar amount of work for the sum of £2,000 fixed as the normal limit of an improvement grant in 1969.
§ Mr. KaufmanNo specific answer is possible as cost of a house improvement is determined by the work entailed in individual cases. For example, an extension would be zero-rated for the purposes of value added tax whilst repairs would be fully taxed for that purpose.
176WHowever, the index of repair and maintenance costs for all types of building— 1970=100—rose from 93 in the third quarter of 1969 to 167, net of VAT, in the second quarter of 1974. The average improvement grant approved for private owners in the second quarter of 1974 was £914 as against the normal improvement grant limit of £1,000 which is itself to be increased, by order, to £2,400 in housing action areas, £1,920 in general improvement areas and £1,600 elsewhere.