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VAT CUT WOULD BOOST REFURBISHMENT SAY CONSUMERS

One in four people would be more likely to refurbish their bathroom if a VAT reduction was introduced, according to a poll.

Presented with the prospect of a 15% VAT cut on bathroom products, 23% of UK adults said they’d be more inclined to undertake an improvement project. Among homeowners, over one in three said such a tax cut would encourage them to complete full bathroom refurbishment.

The survey was conducted by Opinium, with over 2000 people questioned between 14th-17th July. When asked about the impact of VAT reductions on their renovation plans, just over a third of respondents  (36%) stated that they would use the savings on additional renovation work, whilst one in five (20%) said they would improve the specification of the work. When presented with the prospect of VAT reduction, on average, around half of respondents (49%) who had previously said they would not hire a professional to complete works, claimed they would now do so.

Tom Reynolds, Chief Executive of the Bathroom Manufacturers Association, who commissioned the poll said:

“The Government is considering how it might encourage a green recovery and home refurbishment is crucial. With a third of domestic water use in the bathroom, installing modern, efficient, and compliant fittings is vital. This research shows that reducing VAT to 5% on home improvement should be in the Chancellor’s toolbox.”

“Over a third of respondents (36%) who said that they would not undertake renovation work within the next 3 months, stated that with a VAT cut they would complete the work immediately rather than waiting. But this is not just a tax break for toilets, as our research show consumers would use the additional budget on other home improvements”.

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