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A YouGov survey, commissioned by professional trade body the National Federation of Builders (NFB), found that over half of Britons would risk hiring a cowboy builder to carry out work on their home. Almost two thirds blamed rising costs of food, fuel and finance for making a VAT-free cash-in-hand deal more appealing.
NFB's Chief Executive Julia Evans said: "With mounting energy bills, food prices and mortgage payments, it is no wonder that consumers are more tempted than ever by a tax-free deal on their building work. As long as the temptation is there, people will be willing to take a risk despite all the warnings.
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"But using a cowboy can turn your home improvement dreams to ruin, with many consumers having to pay twice in order to clean up the mess their builder left behind."
The findings, based on the responses of 2,000 adults, have led to fresh calls on the Treasury to reduce the VAT rate on domestic repair and improvement work from 17.5% to 5%. This, says the NFB, would help to level the playing the field between the cowboys and bona fide builders and reduce the cash-in-hand temptation.
She added: "Ultimately it's high-time the government reforms the punitive VAT system which allows illegal businesses to flourish at the expense of reputable tax payers.
The NFB says recent studies in France and the Netherlands have showed that cutting VAT reduced rogue trader activity. They were also revenue neutral for the Treasury, as the measures encouraged a greater number of companies operating in the black economy to start paying tax.
Over 100,000 complaints are made about rogue tradesmen each year, according to figures from the Trading Standards.
(CD/JM)
