The lower value added tax rate on home extensions and renovations, and garden maintenance will continue for a further six months, sources in The Hague have told current affairs show Nieuwsuur.

The cut from 21% to 6% was first introduced in February 2013 as a way to stimulate the building sector, which was struggling because of the collapse in the housing market.

The reduction has already been extended from one year to January 2015. Now, ministers and the three opposition parties working out the government’s 2015 spending plans have agreed a further extension, Nieuwsuur said.

The budget will be formally published on September 16.