VAT increase on listed buildings will 'discourgage improvements' I think it may prevent buildings from being altered in a way that gives them a sustainable future. Without mods cons such as kitchens, loos and disabled access, how can these buildings be adapted to modern use and earn their keep? Mr Osborne also caused anger by refusing to reduce the VAT for repair work to listed buildings. Harry Cotterell, the president of the Country, Land and Business Association, said: "What has happened with VAT for work on listed buildings is not fiscally neutral. It would have been fair to equalise the VAT rates to alternations and repairs on listed buildings at the lower VAT rate of five percent. It is appalling that instead the rate for repairs has stayed at 20 percent and the rate for alternations has risen to 20 percent. This is purely revenue-raising by the Chancellor, dressed up as support for heritage. It won't help heritage one jot. A spokesman for English Heritage said they were considering the implications of the announcement before commenting. There are currently about 400,000 listed buildings in the UK. The VAT increase will take effect from October 1.