IHBC NewsBlog Archive

The Institute of Historic Building Conservation (IHBC) has condemned the withdrawal of VAT relief for key heritage construction works, saying it will undermine the future improvement of many of the UK’s listed buildings while threatening much-needed growth, especially in construction and tourism.

The IHBC has submitted its response to the HMRC’s removal of VAT relief on key historic building work – the so-called ‘heritage VAT raid’ – announced in the recent Budget. The ‘VAT raid’ was portrayed in the Budget as a response to ‘anomalies’ in taxation. This has been rejected by the IHBC.

As work on existing fabric now accounts for about half of the construction sector economy, the alignment of VAT across repair and new build would be much simpler to operate. Also the new VAT raid will threaten important heritage improvement works, and so undermine growth in key sectors such as tourism and construction.

Jo Evans, IHBC Chair, said: ‘A huge cross-section of those distressed by the impact of the proposals met with the Exchequer on the 17th May, and made the case against the proposals very forcefully. I think it’s fair to say that while government is open to discussion on transitional arrangements just now, it is not considering the kind of U-turn we all want. It’s early days though, and we will all be keeping up pressure on the Chancellor to revisit these highly damaging changes!’

‘English Heritage, the Scottish Government and other major interests such as university bodies also have added their weight to the case against the changes. And as everyone will push for the same special recognition that the Church of England has managed to secure for places of worship, it will be simplest to abandon the current proposals en masse’.

Seán O’Reilly, IHBC Director, said: ‘This policy tries to present a backward step in fiscal planning as a ‘clarification’ in taxation. In fact greater clarity would be achieved if repairs, maintenance & improvement had the same VAT relief as new build. As work on existing buildings now accounts for about 50% of the construction industry, the tax divide between new build and improvement is entirely artificial.’

‘Builders, environmentalists, professionals, heritage experts and quality developers are all absolutely clear that local jobs, low-carbon development, and the future of our built heritage would all benefit from a simplification of the tax system. However that simplification should encourage care through improvement at least as much as it promotes replacement through new build!’

The IHBC response urges the Government not to implement the plan, and instead help the future of the UK’s economy and heritage, by:

• improving the prospects for heritage outcomes in the national interest in line with Government policy by reducing the VAT rate for the maintenance of listed buildings;

• introducing a low unified 5% VAT rate for all works to listed buildings;

• allowing a longer timescale for the introduction of any changes so that projects in progress are not adversely affected.

The IHBC is also a signatory to the ‘Cut the VAT’ campaign response to the VAT-raid consultation, led by the Federation of Master Builders (FMB); the response from the Heritage Alliance, the link body for voluntary sector interests in England’s heritage third sector; and the response from Built Environment Forum Scotland, Scotland’s built and historic environment link body.

See the IHBC’s response to this and other consultations at: LINK

See the ‘Cut the VAT’ Campaigns case for reducing VAT at: LINK

Letters to the press from members of the ‘Cut the VAT’ campaign and Built Environment Forum Scotland (BEFS) have hit the papers, adding to the public campaign by heritage luminaries such as Loyd Grossman.

See the letter from ‘Cut the VAT’ campaigners to the Telegraph at: LINK

See the letter from BEFS’ members in the Scotsman at: LINK

See the text for the City AM article by Loyd Grossman at: LINK

Parliamentary questions raised on behalf of Built Environment Forum Scotland (BEFS), of which the IHBC is a member, confirm that the Scottish Government considers the move ‘deeply regrettable’, and ‘in the opposite direction from the approach that the Scottish Ministers advocate.’

Responses to two parliamentary questions initiated by BEFS and submitted by Patricia Ferguson MSP have confirmed that the Scottish Government has not had an opportunity to consider the impact of the policy despite the scale of the impact on devolved matters in planning.

Scottish Government Cabinet Secretary Fiona Hyslop, responding to the questions, described the move on VAT as ‘a deeply regrettable step in the opposite direction from the approach that the Scottish Ministers advocate.’

Hyslop pointed out that ‘Maintaining the VAT relief on alterations to listed buildings, and reducing the VAT rate applicable to repairs and maintenance, would be important positive steps which would stimulate economic activity in a sector worth around £2.3 billion gross value added to Scotland’s economy, a significant proportion of which is attributable to construction activity’.

Sources

Question:
To ask the Scottish Executive whether it will respond to the UK Government’s consultation on the proposal to remove the zero rate of VAT for approved work to listed buildings. Question S4W-07024: Patricia Ferguson, Glasgow Maryhill and Springburn, Scottish Labour, Date Lodged: 02/05/2012)

Answer by Fiona Hyslop (14/05/2012):
Unfortunately, the consultation document published by HM Revenue and Customs does not offer the opportunity to comment on the substance of the proposals, only on the draft legislation that has been prepared to implement the proposed changes. Further, despite the consultation document pronouncing that the proposed changes represent ‘the best option’, the UK Government officials have not, at the time of writing, approached Scottish officials to discuss the impact of this measure on the historic environment, an area of policy which is devolved.

I have therefore written to the Chancellor of the Exchequer expressing my concern about the proposal to remove VAT relief on approved alterations to listed buildings and urging him to reconsider introducing this deeply regrettable policy change.

Question:
To ask the Scottish Executive what the impact will be on listed buildings in Scotland of the UK’s Government’s proposal to withdraw VAT relief on approved alterations to them and what the reasons are for its position on this matter. (Question S4W-07023: Patricia Ferguson, Glasgow Maryhill and Springburn, Scottish Labour, Date Lodged: 02/05/2012)

Answer by Fiona Hyslop (14/05/2012):
The UK Government’s proposal is clearly a deeply regrettable step in the opposite direction from the approach that the Scottish Ministers advocate. Maintaining the VAT relief on alterations to listed buildings, and reducing the VAT rate applicable to repairs and maintenance, would be important positive steps which would stimulate economic activity in a sector worth around £2.3 billion gross value added to Scotland’s economy, a significant proportion of which is attributable to construction activity. It would further bring empty homes back into use, reduce the incentive to use non-VAT registered contractors and help improve the condition of houses.

I wrote to the Chancellor of the Exchequer on 26 April urging him to withdraw from this policy.

For the original BEFS motion see IHBC NewsBlog at: LINK

The Chancellor has agreed an extra £30 million to help resolve the damage to the future of listed places of worship by the budget’s recent heritage ‘VAT raid’, a subvention only confirming the high-level recognition of the damage caused by the plans to other listed building owners.

The Church of England states:
The Church of England has welcomed today’s agreement with the Government over the future funding of alterations and repairs to its 12,500 listed buildings, which will provide £30 million a year extra money. This is on top of the £12 million already in the Listed Places of Worship Grant Scheme (LPWGS).

The Bishop of London described this as an acknowledgment from Government of the unique heritage value to the nation of cathedrals and churches and the way in which these alterations are enabling them to serve their local communities in a range of ways alongside being centres of worship.

Despite not persuading the Government that maintaining zero rated VAT for alterations is the best way forward, church leaders today said that the £30 million a year extra money that the Chancellor has committed to the LPWGS will enable the equivalent to the VAT bill to be paid out on all alterations and repairs to listed church buildings. The Scheme pays out to those denominations and faiths with listed buildings.

The LPWGS will in future be ring fenced and no longer vulnerable to cuts in departmental budgets and it is planned to re-introduce monthly pay outs from October. The scheme will be guaranteed for the duration of this Parliament. Parishes have shown they need a much greater degree of certainty in the funding they receive and this will now be met by ironing out some of the more unhelpful characteristics of the current LPWGS.

The Bishop of London, the Rt Rev Richard Chartres who chairs the Cathedrals and Church Buildings Division and who led the discussions with the Treasury said ‘We owe a debt of gratitude to the Second Church Estates Commissioner Tony Baldry, for his role in brokering this agreement, and to Anne Sloman, and Janet Gough who have worked tirelessly in a very short window of opportunity but the Chancellor made it very clear that he was moving to ease the impact on the churches in recognition of the massive contribution made by congregations up and down the land to the life of their communities’.

Anne Sloman, Chair of the Church Buildings Council said, ‘the fact that the Treasury offer went from £5million to £30million is a recognition of the tremendous value for money to the nation as a whole that our buildings represent. We are grateful to parishes up and down the land who have lobbied so hard since the Budget to bring this point home to the government, and even more grateful for the massive contribution volunteers make by their efforts, week in and week out, to keep our beautiful churches in good repair for worship and adapted to serve the community in so many creative ways.’

The Heritage Alliance states:
The Chancellor’s announcement of an extra £30m for the Listed Places of Worship Grant Scheme is very welcome news for listed churches. But this announcement does nothing to address the ‘bigger picture’ of the Government’s decision to levy VAT on approved alterations to all listed buildings, and will leave communities across the UK unsure of the future.

Churches are a very important part of the historic environment and they face acute challenges, but secular listed buildings – such as community centres and village halls – face similar challenges in raising money to alter their buildings to give them a viable twenty first century lease of life. Levying VAT on these alterations will inevitably sound the death knell for plans to revive cherished buildings, as construction projects are mothballed or lost – damaging local economies, streetscapes and community services. The heritage movement is not a preservationist lobby – sympathetic adaptation is the primary strategy for securing the future of our listed buildings. Rather than curtailing an anomaly that allows wealthy owners to avoid tax on alterations to their listed homes, this ‘heritage tax’ will hit the far greater majority of modest owners and community groups working hard to reuse listed buildings, by adding an extra 20 per cent to the cost of keeping them going.

Chief Executive of The Heritage Alliance, Kate Pugh, said: ‘Listed buildings are by definition public goods. They’re valuable for the unique character they bring to our cities, towns and villages, and their economic contribution – through the fast-growing tourism industry and the construction sector – is significant.

‘Whilst an extra £30m for listed churches is of course good news, it does not address the big picture of the potentially disastrous impact of the Government’s VAT proposals on all listed buildings. Failure properly to address this issue threatens to undermine the positive initiatives in the Penfold Review and the National Planning Policy Framework, and leaves a question mark hanging over a range of Government initiatives, from the asset transfer programme and the philanthropy drive to the Big Society agenda.’

‘The Heritage Alliance will continue to call on Government to reverse entirely this misguided proposal for all listed buildings, irrespective of type or ownership. I believe a proper review of the policy objectives behind the measure, using an adequate evidence base, is vital before such an important change – which is irreversible under EU law. I look forward to discussing with Government how they intend to address the needs of all listed buildings.’

See the Heritage Alliance comments at: LINK

Church of England News: LINK

More storage space, better soundproofing and ‘period features’ such as good light are some of the key features that people need when choosing a home!

A new Ipsos MORI research report for the Royal Institute of British Architects (RIBA) has provided important insights to housebuyers’ interests, and confirmed that consumers ‘lack trust in estate agents and home builders to provide accurate information’.

The report, called ‘The Way we live now: What people need and expect from their homes’, is a ground-breaking piece of research that provides the only national evidence base setting out how people are using their homes now, what they look for when choosing a home and what they think needs to happen to improve the home-buying experience. The report, the first of its kind for over 50 years, will be used as evidence by the Future Homes Commission, a national inquiry that is currently developing recommendations for how houses should be designed and delivered in future. It will provide policy makers, house designers and builders much-needed consumer evidence to ensure that new homes are good quality and fit for modern households.

The eight key features that people need and want from their homes today, as revealed by the RIBA/Ipsos MORI report, are:

1. Long-term and short-term storage for functional items, and for personal possessions people have chosen to keep during their lives.

2. Dedicated space for domestic utility tasks, such as vacuum cleaners, washing, drying and ironing clothes as well as storing rubbish and recycling.

3. Large windows for natural light, large rooms and high ceilings – these are typically referred to as ‘period features’. A ‘sense of space’ is vital to people’s wellbeing, and expectations of a new home are often shaped by the homes we have lived in previously.

4. Large main living area – for social functions such as eating and entertaining and relaxing. People typically prefer to have an element of open-plan layout to accommodate entertaining friends or family, regardless of age or lifestyle.

5. Layouts which take into account technology used within the home – we want our homes to have enough sockets and storage for technology to enable us to arrange furniture and rooms in different layouts.

6. Space for private time away from other members of the household – across all age groups, and especially where generations live together, private space makes an important contribution to our sense of wellbeing within our homes. Noise reduction within and between households is also essential.

7. Private space outside or access to green public space in urban locations – this is important for wellbeing for all, and particularly crucial for families; parents like a safe place for children to play outside.

8. Options for different home layouts. Despite some universal needs such as flexible space to entertain and socialise, there were different needs and expectations according to the life stage or the size and age of households and families, which meant that there was no single, standard layout that would cater for all people.

The research also reveals how people choose a home and how they think the house buying experience should be improved.

People find it challenging choosing a home and find it difficult to understand and compare space between homes. Emotional considerations – such as the ‘feel’ of a home – and the desperation to get on the housing ladder can overrule practical considerations such as ‘where can I store the vacuum cleaner?’ or ‘where will the rubbish bin go?’

Through this research, it is revealed that consumers would like the following improvements to the home buying experience:

1. An independent, cross-professional body to regulate the quality of, and provide free information about new-build homes.

The quality of new homes – the quality of building materials, fixtures and fittings (including noise reduction and energy efficiency) – is the biggest concern. People also feel the bedrooms in many new homes are too small and want to see size regulation for rooms in new homes.

2. Free information to help homebuyers compare issues such as noise, light, safety and environmental performance.

Consumers lack trust in estate agents and home builders to provide accurate information, and concluded that this improvement would be most appropriately delivered by an independent third party.

Harry Rich, RIBA Chief Executive said: ‘It has been over half a century since a government-tasked committee researched how households live, yet the size and designs of homes being built now are still defined by that great but out-of-date report – from a time when we had sewing boxes in our living rooms and indoor toilets needed regulating.’

‘Until today there has been no evidence base that sets out how we are living now and what we want from our homes. This new research provides important evidence on which we can base some changes to the way our homes are designed, delivered, marketed and sold to us.’

Chief Executive of Ipsos MORI, Ben Page said: ‘The research graphically shows just how cramped and poorly planned much of our housing is today, and the extraordinary lengths people go to cope with it. RIBA is absolutely right to draw attention to it.’

RIBA News: LINK

Communities Secretary Eric Pickles has decided not to intervene over Cornwall Council’s decision to allow the redevelopment of the derelict South Quay in Hayle which is part of a World Heritage Site.

Both English Heritage and UNESCO’s consultants objected to ING Real Estate’s proposals for shops, 30 homes and a restaurant as ‘incongruous’ and ‘inappropriate’ for the location.

Search Planning Portal: LINK

The Churches Conservation Trust (CCT) has published its ‘Regeneration Strategy for 2012-15’, and launched a film on the work of its Regeneration Task Force and the diverse groups it has worked with in securing the conservation of churches.

Crispin Truman, CCT Chief Executive, writes:
I thought you might like to see our recently completed short film which illustrates the work of the team, and our new Regeneration Taskforce Strategy 2012-15.

I think the film helps to demonstrate the progress which the team has made in demonstrating practical solutions and its role in assisting communities to take on complex and challenging historic church projects. The Strategy then describes how we see the way forward, including the priorities for the team in the next 3 years. This is one of a number of plans that the Churches Conservation Trust will be delivering over this period. Many of you have contributed to both pieces of work and we continue to be enormously grateful for all the support we receive from our partners and colleagues.

The environment in which we work continues to be challenging. The Regeneration Taskforce is an effective and innovative way in which we can address many of those challenges directly: by working with partners and communities to find new uses and management arrangements for some of the nation’s finest historic buildings. Partnerships and collaborations are key to our success, so please get in touch if you wish to discuss further opportunities for working together.

See the video on the CCT website at: LINK

Download the report at: LINK

See the CCT at: LINK

The Urban Design Group (UDG) has published the outcome of its pilot survey undertaken spring 2012 into research needs in urban design.

Download the report, entitled ‘Urban Design and Public Realm research use and needs’, HERE: LINK

Former RIBA president, architect George Ferguson, has said he will run for the post of elected mayor in Bristol and pledges to save city £3m.

Bristol24-7 Article: LINK

BD Online Article: LINK

The Environment Agency (EA) has issued working draft guidelines advising interested parties on its role and responses regarding planning and permitting issues, with a closing date for responses of 15 June.

The EA states:
These guidelines have been developed to help our staff, local planning authorities (LPAs), the Planning Inspectorate and developers with planning and permitting issues.

They explain our role in the planning and permitting processes and how we will advise on developments that require planning permission and an environmental permit from us.

The closing date for comments is 15 June. The final guidelines will be published in summer 2012 after we have gained feedback.

The guides will provide the following advantages:

1. Be aware of any issues early on. We will make planning authorities and developers aware of permitting issues during planning. This will reduce the chances of ‘surprises’ during the permit application process, such as requiring a taller chimney or different building design.

2. Aid faster decision making in the planning process by identifying those developments that require complex permitting decisions early. This allows us to encourage developers to parallel-track their planning and permitting applications and faster resolution of issues.

3. Help faster decision making in the permitting process by advising developers on requirements for their permit application early in the process, helping them to submit permit applications with all of the required information first time.

Download at: LINK

Environment Agency Guidelines: LINK

The government has officially launched the search for a successor to Paul Morrell as the Government’s chief construction adviser.

Construction News Article: LINK

The Heritage Lottery Fund (HLF) has announced earmarked support totalling £15.9m for the regeneration of 12 city and town centres stretching from Falkirk to Folkestone.

HLF’s investment will come through its Townscape Heritage Initiative (THI) programme which fosters effective partnerships between local organisations enabling repairs and other essential works in historic but often run-down areas. This latest funding, integral to wider conservation and regeneration strategies, will also help provide employment and training opportunities.

Carole Souter, Chief Executive of HLF, said: ‘The next time you walk down your local high street, remember to look up and admire the fantastic heritage all around you. Our town centres deserve to be at the heart of community life and the Heritage Lottery Fund believes that even small changes, such as improving shop fronts or restoring a building’s historic features, can make a difference. By working closely with local authorities and their respective communities, our substantial investment will help bring vacant properties back into use as well as create new business and training opportunities that will be of benefit to many.’

Areas set to benefit include:

Tredegar, Blaenau Gwent – first-round pass of £1.6m, including £50,000 development funding
Tredegar was one of the first planned industrial towns in Britain and an early centre for the industrial revolution in South Wales. At the heart of Tredegar lies the ‘Circle’, the town’s historic core, which forms the main focus for Blaenau Gwent Council’s regeneration plans. A number of historic buildings will be restored including the building which housed the Tredegar Medical Aid Society, established in 1890 – which Nye Bevan used as a model to establish the NHS. The project will also offer traditional skills training through innovative partnerships such as with the locally based British Gas green skills training centre, Centrica. The Tredegar townscape scheme, once completed, will complement other HLF funded projects in the area including the restored Bedwellty House and Park.

Peckham, London – first-round pass of £1.7m, including £50,000 development funding Located in the heart of South London, Peckham is a vibrant town centre and busy retail area, with buildings dating from the 18th to the late 20th century. The scheme, run by Southwark Council and part of a wider regeneration project for Peckham, will repair and restore historic buildings on Rye Lane, Peckham High Street and contribute to the opening up of the historic public square at the Grade II listed Peckham Rye Station as a new community space. An impressive range of community-led complementary initiatives will be implemented, including traditional skills training and community events encouraging local people to research and celebrate the area’s history.

The 10 further places that have received earmarked HLF support are as follows:

· Dewsbury Town Centre, Huddersfield – first-round pass of £2m, including £33,500 development funding
o For more information please contact: Sarah Cheffins, Kirklees Council press office, on 01484 221835

· Derby Town Centre, Derbyshire – first-round pass of £736,500, including £36,500 development funding
o For more information please contact: Chloe Oswald, Derby City Council, on 01332 641634

· Whitehaven Old Town, Cumbria – first-round pass of £707,300, including £48,000
o For more information please contact: Ian Curwen, Copeland Borough Council press office, on 01946 598504

· Bacup Town Centre, Lancashire – first-round pass of £1.5m, including £37,500 development funding
o For more information please contact: David Presto, Rossendale Borough Council, on 01706 252477

· Donaghadee, County Down – first-round pass of £1.043m, including £48,000 development funding
o For more information please contact: David Birch, Ards Borough Council, on 07867787218

· Folkestone Old Town, Kent – first-round pass of £1.3m, including £50,000 development funding
o For more information please contact: Peter Bettley, Creative Foundation, on 01303 245838

· Southgate Street, Gloucestershire – first-round pass of £926,700, including £28,400 development funding
o For more information please contact: Marcus Grodentz, Gloucester City Council press office, on 01452 396133

· Burslem Town Centre, Staffordshire – first-round pass of £1.013m, including £15,200 development funding
o For more information please contact: Julian Read, City of Stoke on Trent,
o on 01782 232305

· Falkirk Town Centre, Stirlingshire – first-round pass of £2m, including £50,000 development funding
o For more information please contact: David Grindlay, Falkirk Council, on 01324 506029/ 0780 3898008

· Haverfordwest Town Centre, Pembrokeshire – first-round pass of £1.2m, including £40,000 development funding
o For more information please contact: David Davies, Pembrokeshire County Council, on 01437 775054/5

North of England Civic Trust (NECT) has been awarded £302,900 from the Heritage Lottery Fund (HLF) to deliver its innovative Heritage Skills in Education project.

The Heritage Skills in Education (HSed) project is an innovative programme to engage students with the conservation and heritage skills of the North East’s built environment, with a project that focusses on the craft and professional skills required to conserve, renovate, adapt and maintain the fabric of historic buildings within the North East.

Andie Harris, Learning and Skills Manager at North of England Civic Trust, said: ‘We are delighted that HLF have funded the project as the sector has identified the need to engage and inspire young people to ensure our important buildings and their landscape are understood, cared for and maintained appropriately for future generations to enjoy.’

Using proven enterprise and vocational training models, developed with teaching staff, craftspeople and historic environment staff, HSed will help a wide age range of students to gain experience through a range of activities designed to appeal to all learning styles. ?Working with schools, colleges and universities on an annual programme of activities, HSed will encourage collaboration between education organisations, heritage professionals and craftspeople to deliver meaningful learning in a real-world context.

The project has access to a large pool of heritage mentors, who will be available for expert advice, to guide the students on the development of their project, provide skills training and share their experience in the sector.

The HSed project will be launched at the English Heritage funded Heritage Skills Festival at Tynemouth Station on Friday 22nd June.

NECT News: LINK

Plans for a housing scheme in north London have been rejected on appeal after an inspector found that it would significantly harm the setting of heritage assets, including a burial ground dating back to the 17th century.

Search Planning Resource: LINK

VirtualTourist.com Announces World’s Top 10 Toilets, with pics!

VirtualTourist states:
Whether referred to as a restroom, loo, toilet, or otherwise, ‘the facilities’ are always an important part of being on the go. With this in mind the members and editors of travel website VirtualTourist.com.

VirtualTourist.com News: LINK