Newsletter - contractjournal.com 21.04.05
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."