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?

Broughty Pensioners Lose Out as Osborne Raids Their Tax Allowances

In the Chancellor of the Exchequer's third budget yesterday he raided the resources of pensioners, what some commentators have referred to as a 'granny grab'.
He announced an increase in personal tax allowances for those under 65 but failed to protect the existing age related extra tax allowances for pensioners. In subsequent examination of the detail in the budget volumes, it became clear that not only is he freezing these allowances for existing pensioners and gradually phasing them out but also removing them immediately for new pensioners born after 6 April 1948.

Details of the Tax Changes from HMRC website

So much for promising a significant increase in the future in the basic pension in 2015 and then taking it away by removing these age related tax allowances. Did he think that pensioners would not notice?

So while George Osborne and his coalition partners give with one hand they are taking away with the other. This will affect everyone over and approaching pension age in Broughty Ferry (and elsewhere). 

The government's own assessment of the impact of these changes is as follows:
"In 2013-14, 4.41 million people aged 65 and over will be worse off compared to 2012-13 when RPI indexation to the age-related allowances is taken into account." (Overview of Tax Legislation and Rates HM Treasury/HMRC page 46)

Budget Withdaws Support for Dundee Computer Games Industry

In his first budget, earlier today, George Osborne, in one throwaway line, dashed the hopes of our vibrant computer games and interactive media industries in Dundee by withdrawing from honouring the previous Labour Government's commitment to introduce tax relief for the UK games industry which had been strongly advocated by Jim McGovern MP Dundee West.

The Chancellor of the Exchequer in the Conservative/Liberal Democrat UK government said,
"So, Mr Deputy Speaker, we will not go ahead with the poorly-targeted tax relief for the video games industry." (Budget Speech Tuesday 22 June 2010)

Earlier this year, Professor Lachlan MacKinnon, in an open lecture in the city, argued that computer games and interactive media were serious business in Dundee. In fact our city is currently home to 12 of Scotland’s biggest games developers and the University of Abertay, Dundee, is a recognised world-leader in the field of computer games and interactive media. Dundee is potentially well positioned to play a leading global role in this booming industry but only if the right conditions can be maintained in the context of international competition. Tax breaks offered in countries elsewhere, such as Ireland, may lure successful companies away from Dundee, which currently employs 3,000 people in this sector.