http://www.building.co.uk/story.asp?...de=3135832&c=0

Is this reduction only on services, or will it apply to homeowners
purchasing supplies to diy?

It reads as an EU provision to allow the UK government to legislate
(probably secondary legislation that doesn't require it to be passed
as bill), to vary vat rates.

It sounds principally to cover labour charges for building maintanence
and repair.

It has for some time been the case that there is zero vat on new
builds both for materials and labour (self-builders can do a vat
reclaim from HMRC).

It may additionally be the case that this new provision (if enacted)
will apply to materials also - but by god it would be complicated to
have different rates of vat on retail (rather than trade account)
building materials depending on what they're used for.

And once the building industry has a sweetner, then the motor industry
will want a vat reduction, and then...