Recommendation 20

The current VAT regime creates a structural disincentive to repair, maintain and reuse historic buildings. Sector bodies have told us that changes, such as rebate schemes or equalisation with new-build rates, could unlock stalled housing schemes, prevent managed decline and generate wider economic benefits. The current approach is out of step with the government’s ambition to promote adaptive reuse and safeguard the UK’s historic environment. We understand the government’s reluctance to introduce tax relief in a time of fiscal constraint but given what we have heard about the potentially huge contribution that built heritage can make to meeting housing targets, it is clear that the returns would be more than worth the investment. (Conclusion, Paragraph 60)