The Northern Territory government has reinstated a popular tradies scheme, after months of rejecting it.

The NT’s new Labor government has caved to pressure to bring back the former Country Liberals government's popular home improvement scheme.

The scheme gives $2000 vouchers to homeowners who employ local tradies.

Chief Minister Michael Gunner says the CLP's package will stimulate the ailing economy.

“We have listened and we have taken decisive action,” he said.

“Small and medium businesses are the engine room for jobs and many have been doing it tough for some time now.”

Mr Gunner said the government will allow people who have already accessed it to use the scheme again, while also doubling the amount available for first time users.

The changes also include increasing the overall budget and the window of time in which it can be accessed.

Opposition Leader Gary Higgins said it was a “long overdue” victory for the Territory.

“Labor has wasted the last five months playing politics with the economy and hard-working tradies,” he said.

“The lack of urgency is endemic of this government and Territorians are owed an explanation why it took cabinet so long to make this decision.”

The scheme comes in addition to a $22 million package to prop up the struggling construction industry.

It allows up to 50 per cent of the voucher to be used to cover the cost of goods and materials.

Subcontracting is now allowed under the scheme now too, while integrity measures (including site spot audits) will be undertaken to ensure compliance.

Applications can be made until 31 December, 2017 (or until funding is exhausted). Businesses can register from Monday, February 6, while homeowner applications commence from February 20.