The Government has been accused of treating the construction industry like “a poor cousin” as calls for a cut in VAT to help boost the homes sector intensify.

Scottish Building Federation chief Michael Levack is among those calling for action in order to help recession-hit firms while at the same time helping to root out cash-in-hand “cowboy” builders.

His call comes in the wake of a survey which found half of Scottish homeowners would spend more on building works if VAT were cut from the current rate of 15 per cent to 5 per cent.

Mr Levack said: “Encouraging homeowners to spend more money on building works to improve their home would make a huge contribution towards sustaining the jobs of thousands of apprentices and tens of thousands of other construction workers in Scotland.

“Cutting VAT on the services provided by legitimate building firms would eliminate the competitive advantage of cash-in-hand cowboy builders, helping to drive them out of the industry for good.

“As the recession continues to bite hard, construction’s recovery literally needs to start at home - and cutting VAT on home building works to 5 per cent would be the ideal place to start.”