He blames his labourer.... oh how I need to get one of those.....

Even more reason to find someone else. If he's charging you the full rate and using inexperienced labourers then he's a cowboy.
I would stop all work on the job (and payment for it) and get a professional in to assess the work. You can't mess about if they've been working on ceilings and steps, it could be dangerous. Show the report to your builder and give him the opportunity to make it right, if he refuses then show him his cards, and don't pay him for what he's done - it'll probably cost you even more to put right his mistakes.