Yesterday Members of the European Parliament sent a strong message to the UK Government when they voted by a majority of over 600 in favour of reduced rates of VAT for building repair and maintenance work.

The vote took place during a debate on European Commission plans to increase the range of goods and services that can use reduced VAT rates. A report on the issue by Dutch Socialist MEP Leke van den Burg had already backed the idea. The aim of the VAT cut is to kick start the European economy and create jobs.

UK MEPs from all political parties set aside political differences also voting in favour of reduced rates of VAT for building repair and maintenance work. This will put huge pressure on their respective political parties to adopt a similar cut in VAT as party policy here in the UK.

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Speaking after the vote Richard Hyslop, 'Cut the VAT' Coalition Co-ordinator, said: "This is fantastic news; today the European Parliament has joined forces with the European Commission to send out a very strong message to the individual member states of the European Union, namely, that reduced rates of VAT for building repair and maintenance work will actually create jobs and help kick start the economies of Europe. While we are delighted that MEPs have voted overwhelmingly in favour of a reduction in VAT, the European Parliament's views are advisory and European finance ministers will have the final word. It is therefore vital that Alistair Darling does all he can to ensure that the March Ecofin Council follows the lead set by the European Commission and now the European Parliament."

(CD/JM)