December's Autumn Statement is a prime opportunity for the Government to boost UK economic growth, according to the Federation of Master Builders (FMB).

In its letter to the Chancellor in advance of the Autumn Statement, the FMB urges Government to stimulate growth in the construction industry and, as a result, the wider economy via a number of key measures:

•Introduce a wide range of economic and fiscal incentives to encourage homeowners and landlords to make energy efficiency improvements to cut carbon emissions and boost growth in the construction sector – such as the introduction of stamp duty or council tax rebates for purchasers making energy-efficiency improvements to their homes;

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•Levy VAT at 5% for all energy efficiency measures to help households save on energy costs and cut carbon emissions from their homes, whilst at the same time boosting growth in the construction sector;

•Robustly defend the UK’s position and ensure it defeats the European Commission’s recent Reasoned Opinion that challenges Britain’s right to charge VAT on the installation of a small range of energy saving materials; and

•Change the tax treatment of dwellings within self-invested pension plans to bring it into line with the regime relating to commercial property – if the rules were brought into line with commercial property, many house builders would take the opportunity to build new homes for their pension plans.

Brian Berry, Chief Executive of the FMB, said: "The forthcoming Autumn Statement comes at a crucial time both in the political cycle and the economic recovery. As we pass the half way mark in the Coalition’s expected five year term, economic forecasts for construction and the wider economy remain extremely gloomy. If the Government is serious about putting our economy back on track, it must use this opportunity to pull as many levers to stimulate growth as possible."

(CD/IT)