Eastbourne MP brings campaign over zero VAT to Parliament

MP Caroline Ansell wants to change the VAT regime to make it easier for existing buildings to be converted. As it is, converting a building like the old Debenhams site in the town centre attracts 20 per cent VAT but new builds or demolition attract no VAT at all.

Speaking in the House of Commons on Monday (January 9), Mrs Ansell said this means buildings like Debenhams ‘are overlooked and year on year move towards dilapidation’ due to the VAT rules.

She asked Dehenna Davison, the Levelling Up minister: “Has any assessment been made of the number of new homes that could be delivered should different VAT regimes be levelled up?”

Dehenna Davison said: “Questions on VAT would be a matter for His Majesty’s Treasury, but we are of course committed to reviewing incentives around brownfield development and will announce further details on the scope of that review in due course.”

Speaking afterwards Mrs Ansell said: “There is an urgent need for government to look at the VAT regime around empty buildings like Debenhams in Eastbourne. This need is even more acute in our town as we have such limited places to build the new homes we need. Bordered by the sea and by downland, land is at a premium but there are buildings lying empty right now that could be used if the financial incentives are right.

“Many people will shake their heads and wonder why new buildings attract no VAT but existing buildings are rated at 20 per cent. In a time of environmental awareness, reusing is a better option in many cases. I will continue to push ministers to make changes to the VAT regime to ensure empty buildings are brought back into use.”

Eastbourne's Local Plan: 28 key development sites proposed