The Builders Merchants Federation (BMF) is the latest group to express “dismay” at the chancellor’s decision to increase VAT to 20%.
The BMF had hoped for a VAT cut to 5% for home improvement work.
It added its voice to that of the Federation of Master Builders and the Construction Products Association.
BMF managing director Chris Pateman said the Scottish Parliament and Welsh Assembly had both supported a move to cut VAT on home improvements.
“Mr Osborne could have created a climate in which home improvement is more affordable to encourage homeowners to invest in their property,” said Mr Pateman.
“His failure is disastrous for construction which is already on its knees with hundreds of thousands of job losses suffered over the last two years.”
Since the start of 2010, the BMF has been campaigning for popular home improvements to be linked to environmental advances so everyone could accelerate progress to de-carbonise housing.
However, the BMF welcomed cuts to business taxes such as Corporation Tax and the Small Business Tax.