ICAEW wants repairs VAT reduction to 5%

THE ICAEW has urged the Chancellor to implement a range of tax measures to starve off a double dip recession.

The institute is calling on George Osborne to increase business confidence by reducing the 20% VAT rate on repairs and refurbishment of dwellings to 5%, as well as raising the rate of tax relief for the Enterprise Investment Scheme.

CEO of ICAEW Michael Izza (pictured) has sent a letter to the Chancellor ahead of the forthcoming Autumn Statement also urging that current tax credits on Research & Development are maintained.

Warning signs of a double dip recession in early 2012 were flagged up in a recent business confidence survey, conducted in association with Grant Thornton.

Michael Izza, CEO of ICAEW, said: “Our Business Confidence Monitor research has shown that continued business anxiety is having a massive impact on the real economy.

“Companies are holding back on spending decisions and the Autumn Statement is a key opportunity to help businesses look forward. The economy is at a critical stage and if the viewpoint of companies does not change, there is a real risk of a double dip recession in early 2012.”

Among the recommendations the ICAEW is also calling on the Treasury to acknowledge and rectify the poor service standards at HMRC and its affect on small businesses.

To view a copy of the letter visit

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