4 News
VAT fuelling black
economy says FMB
MORE THAN 55% of all home owners have requested cash-in-hand building work to avoid paying VAT according to new research by the Federation of Master Builders (FMB). Brian Berry, chief
executive of the FMB, said: “This research confirms what we already suspected – too many otherwise law-abiding individuals are asking their builder to carry out cash-in-hand construction work at 0% VAT in order to cut costs. “What’s more, when the professional builder refuses, the home owner will all-too-often find a rogue trader that is willing to operate within the black economy.
“That’s when home owners inevitably become ensnared in nightmare situations with sub-standard refurbishment work that has been carried out with little or no regard for health and safety.” Mr Berry continued: “Research from Experian shows that the black economy in construction is worth almost £10bn a year but this is a
conservative estimate and our latest research suggests the real figure is much higher.
“If government wants to limit the activity of rogue traders operating in the black economy it should reduce the rate of VAT to 5% on all housing renovation and repair work leaving almost no competitive advantage for those disreputable builders. “Not only would this help eradicate the black economy, it would also boost the economy by more than £15bn over five years to 2020 and create more than 95,000 jobs.”
ACR News July 2014 Visit ACR News online at
www.acr-news.com F-Gas Regulation finally finalised
ACRIB, REPRESENTING THE UK refrigeration, air conditioning and heat pump industry has welcomed the publication of the new F-Gas Regulation in the Official Journal at the end of May. This means that the existing F-Gas Regulation is being repealed with the new Regulation entering into force on the 9 June, and will take effect from 1 January 2015. This was followed by
publication of The European Commission’s notice to producers and importers of HFCs and new entrants, which is one of the most critical elements of the new regulation. This notice sets the rules for HFC quota allocations and managing the HFC phase down.
It has set application deadlines and describes the procedure that importers and producers, including the new
entrants, have to follow in order to be eligible to receive quota from the Commission. The notice confirms that placing on the market of these substances needs to be accounted for in the quota system laid down in the Regulation.
All this is the culmination of many years of intensive work collecting feedback from industry, submitting responses to the Commission consultations and liaising with UK Government representatives.
ACRIB has said that it is pleased to see that many of its recommendations were taken up and that elements of the new regulation will strengthen areas identified by UK industry as weak in the original regulation.
The phase down and limited bans for certain applications will provide certainty for the
industry to move forward with choices for new systems, given the impending R22 phase out. However, work will continue to clarify definitions and requirements and to increase awareness of the changes and updates will be posted regularly on the ACRIB website. Implementation acts will be announced and official guidance is expected in the coming months.
ACRIB will be holding a conference on 11 November 2014 in London
to review these changes and provide
a summary of guidance available.
Strong outlook for manufacturing sector
ACTIVITY IN THE UK manufacturing sector remained solid in May, and output is expected to rise strongly in the next three months, the latest CBI Industrial Trends Survey shows. Output volumes continued to grow at the same rate as in the previous two months, and with stronger growth anticipated for the coming quarter. The survey of 437 manufacturers found that total order books
remained well above the long- run average. Export orders fell below normal, mainly driven by the chemicals and automotive sectors, but remained strong by historical standards.
Katja Hall, CBI deputy director-general, said: “Overall, the manufacturing sector continues to perform well. Output growth is on an upward trend, with firms expecting an even stronger rise in the next three months.
Inflationary pressures are under control, with firms now expecting only a slight rise in the selling prices of their goods. The recent rise in Sterling, coupled with a tepid recovery in the Eurozone could weigh on export demand. As the UK’s economic recovery gains a firmer footing, we need to ramp up manufacturing exports to high-growth markets, driving job creation here in the UK.”
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