The SNP representative for Aberdeen Central has also lodged a motion at the Scottish Parliament on the issue.

Mr Stewart, who was appointed as minister for local government and housing in 2016 and served as convener of the Scottish Parliament’s local government and regeneration committee, believes that the standard rate of 20% VAT prevents some regeneration work from being carried out and argues that removing it will “boost sustainable economic growth”.

He said: “The regeneration, refurbishment and retrofitting of our buildings and housing stock is vital to maintain vibrant communities, to reduce energy costs and to achieve our net zero ambitions.

“New build projects are zero-rated for VAT, but refurbishment and retrofit schemes are still subject to the standard rate of 20% VAT and that creates an unlevel playing field and often stops regeneration works from happening to our existing buildings.

“I am urging the Chancellor and the UK Government to abolish VAT on the regeneration, refurbishment and retrofitting of buildings in order to boost sustainable economic growth, bring derelict buildings back into use and to achieve our net zero targets.”

In his letter to the Chancellor, Mr Stewart wrote: “Dear Chancellor,

“The regeneration, refurbishment and retrofitting of our buildings and housing stock is vital to maintain vibrant communities, to reduce energy costs and to achieve our net zero ambitions.

“As you are aware new build projects are zero-rated for VAT, but refurbishment and retrofit schemes are still subject to the standard rate of 20% VAT and this creates an unlevel playing field and often stops regeneration works from happening to our existing buildings.

“I would urge you to abolish VAT on the regeneration, refurbishment and retrofitting of buildings in order to boost sustainable economic growth, bring derelict buildings back into use and to achieve our net zero targets.”

Mr Stewart’s motion to Parliament reads: “That the Parliament believes that the regeneration, refurbishment and retrofitting of Scotland’s buildings and housing stock is vital to maintain vibrant communities, to reduce energy costs and to achieve net zero ambitions; understands that new build projects are zero-rated for VAT, but that refurbishment and retrofit schemes are still subject to the standard rate of 20% VAT; believes that this creates an unlevel playing field and often stops regeneration works from happening to existing buildings, and calls on the UK Government to abolish VAT on the regeneration, refurbishment and retrofitting of buildings in order to help boost sustainable economic growth, to bring derelict buildings back into use and to achieve Scotland’s net zero targets.”