SMEs sceptical on government anti-cowboy measures

Small and medium-sized building firms have little confidence in the measures being taken by government to drive out cowboy builders, according to a survey by the Federation of Master Builders (FMB).

The survey found increasing concern among those working in the private housing repair, maintenance and improvement market.

FMB director general, Ian Davis, said: "Our members, in common with many SMEs in other sectors, are being put under increasing pressure by the continual increase in bureaucracy and red tape emanating from government legislation.

"The costs involved in complying with these schemes has to be passed on to customers, which coupled with the high rate of VAT levied on RMI work, puts the legitimate building industry at a significant disadvantage."

However, Davis did welcome the renewed interest by the Department of Trade and Industry, and Customs and Excise, in the impact that a reduction in VAT on building work would have in improving consumer protection and marginalizing rogue traders.

"The FMB has campaigned for a reduction in VAT on RMI work for many years and we are naturally pleased to see any progress towards that end," he added.