Body that represents small traders says move would help boost the sector

The Federation of Small Businesses (FSB) is calling for VAT on construction work to be cut to 5% to help boost the sector.

The body, which represents small traders, says that this should take some of the pressure off small businesses.

Mike Learmond, the FSB's regional organiser for North Wales, one of the areas of the country that has been hit most hard by the recession in terms of construction output said: “The cut would be a really direct and positive move to stimulate the construction sector, helping work on many smallish projects such as house extensions and new kitchens.

“The sector has suffered because of the decline in the housing market and because of the banks' decision to restrict cash flow.”

The call for the VAT cut is one of the key points in the FSB's general election 2010 campaign manifesto, launched to an audience of North Wales MPs at Westminster.

The group also calls in the manifesto for a moratorium on employment regulation so as not to increase the load on small businesses, a national insurance rebate for new jobs in small firms, alternative routes to finance for small traders and a move to halt the repeal of furnished holiday lettings rules, which will hit many small tourism-related businesses.

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