Small contractors are worried about the amount of work they will receive through the Government’s Green Deal.

Members of the Federation of Master Builders fear that the financial incentives are not large enough for homeowners while energy companies and retailers will squeeze them out of the market.

A federation survey showed that almost half of their member contractors thought homeowners were unlikely to take advantage of the Green Deal when it launches in autumn 2012.

Brian Berry, Director of External Affairs at the FMB said: “The Government is hoping that its Green Deal will persuade homeowners to make their homes more energy efficient but almost 44% of our members, small building firms that are in contact with homeowners on a daily basis, think homeowners are unlikely to take advantage of it.”

“If the Government wants the Green Deal to be a success it should start by offering additional incentives. 70% of respondents to our survey believe that cutting VAT to 5% on all energy efficient materials and work would increase homeowner interest.”

“More than a quarter also believe that council tax reductions would be the biggest incentive for homeowners.”

“Small, local building companies should be the natural choice for homeowners wanting to retrofit their property or make it more energy efficient.”

“However, nearly half of FMB members are worried that they will be squeezed out of the Green Deal market by the major energy companies and retailers and 58% felt that it was either very unlikely or unlikely that small and medium sized building companies would see their workloads increase as a result of the Green Deal.”

“The FMB is therefore calling on the  Government to  help small building companies have equal access to the energy efficiency market by allowing an independent third party financial provider to handle Green Deal finance packages.”

“This would help ensure that small building companies can compete fairly with the larger companies who will be offering ‘one–stop-shops’ to consumers.”

BuilderScrap sourced this article from Construction Enquirer.

The Federation of Master Builders (FMB) has called on the Government to create a green budget to support hard-pressed small to medium sized builders.

The association wants a lower rate of VAT on home energy efficiency improvements, they say it will help keep SME’s afloat and help towards the strict climate targets that have been set for the UK.

Research by Experian last year estimated that 11,000 jobs will go in the housing repair, maintenance and improvement sector over the next decade as a result of January’s VAT hike from 17.5% to 20%.

The FMB also called on the government to reduce stamp duty to stimulate the flagging housing market.

Brian Berry, director of external affairs at the FMB, said: “In the current economic climate householders will need more than just loans, as currently proposed by the government in its Green Deal finance package, to make existing homes more energy efficient.”

“A reduced rate of VAT to 5% for all energy efficiency improvement projects would provide that boost as well as create much needed jobs in the building industry.”

“The construction industry’s prospects for 2011 look bleak. Small and medium sized building companies are continuing to report falling workloads and a third expect to have to cut staff this year.”

“The stimulus effect of a targeted VAT cut would far outweigh the cost to the Treasury and would help to deliver the government’s low carbon policy objectives.”

BuilderScrap sourced this article from Building.co.uk