Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of reducing VAT charged on property repairs required as a result of damage caused by flooding.

VAT is a broad-based tax on consumption and the twenty per cent standard rate applies to most goods and services. Whilst there are exceptions to the standard rate, these have always been limited by both legal and fiscal considerations.

Introducing new reliefs would impose additional pressure on the public finances to which VAT makes a significant contribution. VAT is the UK’s third largest tax and is forecast to raise £161 billion in 2023/24, helping to fund key spending priorities, such as the NHS, education and defence. Plus, there is no guarantee that a VAT relief would be passed on to consumers in the form of lower prices.

That is why the government has instead put in place a comprehensive framework to support flood recovery, which is used in exceptional circumstances to support councils and communities following severe flooding.

Whilst the government keeps all taxes under review, there are no current plans to reduce VAT charged on property repairs required as a result of damage caused by flooding.