It's the third time in the last eighteen months that this tax has risen, and with a struggling economy as it is, it means that more and more builders are choosing to be uninsured. Homeowners are therefore more likely to choose cowboy builders, unaware that the reason they’ve been given a low quote is due to the lack of insurance covering them.

Brian Berry, the Chief Executive of FMB, says "The doubling of IPT (Insurance Premium Tax) over the past two years has troubling implications for construction SMEs and home owners alike. This stealth tax may discourage clients taking out a warranty on building work, which is never advisable practice on a significant building project and could lead to plenty of heartache for consumers further down the line".

Furthermore, James Dalton, the Director of General Insurance Policy at the ABI (Association of British Insurers) said "IPT is a tax on businesses, especially SMEs that often operate on very tight margins and that do the right thing by purchasing insurance to help manage their risks. At a time of continued economic uncertainty, with many firms facing increasing costs, the last thing they need is a further hike in IPT. Unlike VAT, no element of IPT can be reclaimed by businesses meaning they will have to absorb these extra costs – this could cost jobs, drive up prices or companies may decide to reduce their insurance cover, putting them at risk if something goes wrong."

It's vital that the Government are aware of the issues that putting up this tax has caused. Building firms need a commitment from them to ensure that this rise will not increase any further.