Cowboy builders targeted in new government clampdown

The government has announced a new database of trusted tradespeople and a system to protect customers' money, aimed at tackling 'cowboy builders' who give the industry a bad name.

Traders signing up to the scheme will need to demonstrate certain standards of customer service, transparency and dispute resolution. The National Federation of Builders has expressed skepticism about the plan, saying it won't stop rogue operators while the Tories suggested there would be added paperwork for firms already operating legitimately.

Home renovations are one of its biggest sources of consumer complaints, with over a quarter of people experiencing problems such as builders disappearing after upfront payments were made. The Competition and Markets Authority has cited a survey suggesting customers lost more £10bn in 2024 on home and garden maintenance services due to losses, overpriced costs or unfair practices by traders.

Under the new traders' scheme, customers' money will be held in an account and released in parts after certain milestones in projects are completed. The National Federation of Builders has told BBC Breakfast that a better approach would be for every project to have a 'passport' which records all the work done.

Business Secretary Jonathan Reynolds said that, while home improvements can be stressful, 'we're taking action to protect consumers, support reputable traders and make sure people can spend their money with greater confidence and security. '

Shadow business secretary Andrew Griffith said the announcement looks like 'the sort of government initiative that risks the unintended consequence of piling more paperwork onto the majority of businesses who already do the right thing.

Liberal Democrat business spokesperson Sarah Olney said: 'Rogue builders cause real harm and ruin real lives every year. The current system is simply not fit for purpose and this half-baked announcement falls frustratingly short from fixing it. '