Pages

20/04/2012

Whinny Brae School Site More Difficult to Sell After Budget Changes to VAT

Unfortunately, the sale and the redevelopment of the former Eastern Primary School site looks more unlikely. This gloomy prediction comes about because of a proposal obscured in the small print of the budget from the UK coalition government in March. This proposal will add VAT at the standard rate of 20% to the cost of the conversion and renovation of listed buildings.  The former Eastern Primary School is a grade A listed building and as such its conversion and renovation would, in the past, have been zero rated for VAT. The former school was built in 1911, and its listed status means the exterior cannot be changed and only minor alterations would be permitted inside. Last year the Council produced a planning brief that envisaged the old school buildings being converted into housing. It was hoped to find a developer willing to redevelop the site without major changes to the existing school building; but no suitable bids have been received. 


This is very disappointing news. Its disappointing because adding VAT will make the cost of conversion more expensive and therefore in a time when the local housing market is flat, the sale and redevelopment of the school seems a more remote possibility. I know residents will be concerned that long delays may mean these empty buildings deteriorate and become a target for vandals. It's disappointing for the Council too because a substantial sum was anticipated from the sale of the site when the school moved out and this will affect other projects in the capital plan.
Unfortunately, this same VAT hike would make similar listed building conversions more expensive, which might tip the balance more in favour of demolition of listed buildings rather than conversion. In a place like Broughty Ferry that would make finding alternative uses for historic buildings such as redundant churches more difficult. 
This budget change, detailed in VAT Addressing borderline anomalies, is subject to a formal period of consultation closing on Friday 4 May. I was keen to ensure that the Council was going to respond to the government. I am relieved to learn from the City Development Department that the Council will be supporting joint responses from the Convention of Scottish Local Authorities (COSLA) and Historic Scotland about the negative effects of this proposal. 
But I am wondering whether this is enough to turn the tide of public opinion? Apart from encouraging churches and other custodians of listed buildings to make representations, I wonder whether we should emulate Pamela Greener, the wife of the Dean of Wakefield Cathedral, who posted her protest song on YouTube as her way of transmitting her message to George Osborne over his plans for VAT. She performed and recorded her message in the style of a musical hall style ditty in the midst of the building works at the Cathedral.
If that's what it takes, perhaps Mike Marra might oblige and write and perform a distinctly Dundonian message to send to the coalition government at Westminster?