Construction Industry VAT Reverse Charge

That this House expresses its concern at the decision of the Treasury to go ahead with the introduction of the Construction Industry VAT Reverse Charge with effect from 1 March 2021; notes that this is of great concern to small and medium sized firms in the construction industry, who are still reeling from the impact of a prolonged pandemic and the disruption of the UK leaving the EU, and are currently fighting to consolidate their businesses and protect any cash reserves they have after a devastating year; further notes that many firms fear the VAT Reverse Charge will have a devastating impact on their cash flow, with a requirement for additional cash flow to meet this of approximately 5 per cent of annual sales for those companies that submit quarterly VAT returns and 3 per cent for those that submit monthly returns; considers that the introduction of the charge at this time will put jobs and businesses at risk and may result in companies that survived the covid-19 outbreak and the UK's withdrawal from the EU being undone by this additional burden; and calls on the Government to reconsider its decision to press ahead with the change at this time.