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Builders call for VAT cut to tackle cash payments

9 May 2014 Last updated at 12:04 BST

Cutting VAT to 5% on home refurbishment would tempt people away from paying tradesmen cash-in-hand, the National Federation of Builders (NFB) has claimed.

It comes after a survey found that 51% of homeowners had paid tradesmen cash-in-hand in order to get a discount - and did not have any regrets about it.

Undeclared cash-in-hand payments cost the Treasury an estimated £2bn a year.

BBC Radio 5 live's Rowan Bridge visited a building merchants in Manchester to find out what construction workers and customers thought of the idea.