FMB urges government to clampdown on builder cowboys

The new government must clampdown on cowboys, the Federation of Master Builders (FMB) has warned.

Research by the FMB shows that more than a third of homeowners pay builders in cash to get a cheaper job - and almost a half say they do it by not paying VAT.

Homeowners are fuelling the growth in cowboy building work by taking on tradesmen who undercut reputable builders by avoiding the 17.5% VAT .

Andrew Large, FMB public affairs director, said: "If the next government cut the rate of VAT on building work in the home to 5%, then cowboys would no longer be able to undercut reputable builders and homeowners would no longer be tempted by the cowboys' cash deals.

"These tradesman leave shoddy, unfinished work that costs homeowners millions of pounds a year and takes over  half a billion pounds from the public purse."

The FMB points out that under new EU legislation allowing European countries to cut the rate of VAT on building work, France chose to cut its rate to 5.5% in 2000 and saw a dramatic rise in homeowners switching work to reputable builders.

The FMB claims that with such a rate cut, the new government would also see a growth in home improvement work.

The research backs this up after finding that the vast majority of homeowners, 81%, would be more likely to carry out repairs or home improvements if 17.5% VAT was not charged on building work.

Instead of cash deals, 64% of homeowners said they would pay by credit card or cheque if the VAT charged on building work were reduced.