A rise in VAT on the work of brick tool users will lead to homeowners looking for cheaper rates by taking on unscrupulous contractors that they can pay cash-in-hand, one organisation has said.

Ahead of the government's Emergency Budget, which will be presented tomorrow (June 22nd), the Federation of Master Builders (FMB) has called on the leaders to consider the potential that such a policy could have to encourage a growth in tax aversion.

Richer Diment, director-general of the body, commented: "The danger of inadvertently boosting the informal economy is that more people will be put at risk by unscrupulous rogue traders who will exploit cash-strapped customers."

According to the FMB, the rise could lead to as much as a 20 per cent extra cost on top of the normal fee for home improvements.

The Home Builders Federation also recently criticised government legislation, describing recent proposals for a ban on garden grabbing as "unnecessary and counterproductive".

Written by Jude Whitehouse.