Notice of Motion proposed on 4 December 2000

This Council

i) Welcomes the drop in VAT to 5% on property refurbishment and bringing
into residential announced in the Chancellor of the Exchequer's recent
pre-Budget statement.

ii) Welcomes measures to encourage use of brownfield sites for development,
notes that Sheffield has one of the highest proportions of brownfield use in
Yorkshire and believes that more should be done to help urban regeneration
and encourage the development of sustainable communities.

iii) Notes that the lower rate of VAT will only apply
  a) on the sale of renovated property that has been derelict for over ten
     years;
  b) to refurbishment of redundant space above shops; and
  c) to flat conversions to a differing numbers of dwellings.

iv) Notes that most space above shops is not redundant, but is unused and
non-maintained flat space, and that many of these flats could not be
converted to a differing number of dwellings due their small size.

v) Believes that the tax system should contribute to the public good and
that as such VAT should be levied at a lower rate on regeneration
activities.

vi) Notes that
  a) the Local Government Association regards thismove as a "small, but
     welcome attempt to solve a long-standing problem",
  b) the Empty Homes Agency believes that the Government should "harmonise
     VAT to 5% on the cost of works to ALL empty property",
and resolves to join these organisations in lobbying for further changes
calling upon the Government to further reform the tax system relating to all
conversions and refurbishments of existing dwellings to encourage habitable
accommodation.

vii) Resolves to send this motion to the Secretary of State for the
Environment, Transport and the Regions, the Chancellor of the Exchequer and
the Sheffield Members of Parliament.



---8<---
NOTES:

It's my first motion and I'll need somebody to second it.  It covers
Housing, Social Inclusion and Planning.  I can't see how the Labour Group
can oppose it, but they have their own method of thinking.

The deadline for December's Full Council is Tuesday 28th, so I need to find
some free seconds to get to the Town Hall(!)

BACKGROUND:

Gordon Brown has preannounced VAT relief on property refurbishment and
bringing redundant space above shops into residential use, but has left lots
of loopholes to avoid actually letting people claim it.

The 5% level will only apply on refurbishing redundant space, refurbishing
of property that's been derilict for over 10 years, or refurbishing flats to
change the number of dwellings.

The pre-budget report is in http://www.hm-treasury.go.uk/
Section 6.80 is the relavant part which says:

"a reduced rate of VAT ... converting residential properties into a
different number pf dwelling"

"relief for the sale of renovated houses that have been empty for 10 years
or more"

"relief ... converting redundant space above shops ... into flats for
letting"

The Empty Homes Agency http://www.emptyhomes.com/press.htm has commented
saying

"[hopes]... harmonise VAT at 5% on the costs of works to ALL empty
property..."

It also relates to Urban Regeneration.  Empty, decaying properties
accelerate the running-down of an area, with those who can afford to desert
the place leaving.

LibDem MP Don Foster has commented on the Urban White Paper:

"Little to guarantee developments on Brownfield rather than Greenfield
sites. Little to tackle the national disgrace of 750,000 empty homes. Little
to deliver the promised strengthening of local government powers. Little to
ensure joined-up government at national and regional level.

So, why no Greenfield development tax, why no cut to 5% of VAT for house
renovations, why no improved compulsory purchase powers for local government
and why no push to establish regional government?"

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