§ Mr. Fisherasked the Secretary of State for the Environment what effect the imposition of value added tax on building alterations is likely to have on the number of homes rehabilitated and converted by housing associations through the Housing Corporation programme in 1984–85.
§ Sir George YoungThe imposition of value added tax on building alterations may add of the order of £20 million to the costs of projects within the Housing Corporation's programme for 1984–85 in England. The programme is expressed in cash rather than volume terms.
§ Mr. Lofthouseasked the Secretary of State for the Environment what will be the estimated cost to local authorities of the imposition of value added tax on house alterations.
§ Sir George YoungThe impact is likely to be small; under section 20 of the VAT Act 1983 local authorities are able to reclaim VAT from the Exchequer when they are renovating their own properties.