The Government is giving late payers another free pass

August 27, 2019

Kelly Tolhurst MP, small business minister, delivered a statement to the House of Commons in June 2019, announcing measures to ensure that businesses get paid on time.

In July 2019, Oliver Dowden MP, minister for implementation, reiterated this ambition by announcing that government suppliers must pay 95 per cent of their invoices within 60 days, or run the risk of being prevented from securing future government contracts.

Yet only a month later and after some late payers were reinstated to the prompt payment code, the Governments small business crown representative, Martin Traynor, has rolled back on previous commitments, suggesting that companies can pay a quarter of their supply chain late in the previous two reporting periods, without consequence.

Quoted in building.co.uk, Treynor said: “The 75% figure is about reality”.

Richard Beresford, chief executive of the NFB, said: “The reality is that 50,000 businesses close every year because of late payment. Even the department for business admitted that payment times are getting longer. How many more businesses have to go under before we make late payment a thing of the past?”

Nick Sangwin, NFB national chair, said: “This decision is shocking. The Government has ignored pleas from 99% of the construction industry to make the prompt payment code statutory and instead has made it easier to be a late payer.

“With Brexit uncertainty already having a devastating impact on our industry and ministerial silence on reverse charge VAT, this change to late payment shows a complete lack of respect for small business and the construction industry as a whole.”

The NFB tried to contact the cabinet office on this urgent matter but was redirected to a full mailbox.

National Federation of Builders

The National Federation of Builders is a United Kingdom trade association representing the interests of small and medium-sized building contractors in England and Wales.

You May Also Enjoy

Breaking News

Freehold and Leasehold Reform Act-lessees can control their own destiny

Matthew Pennycock, Minister of State for Housing and Planning, has made a Parliamentary Statement regarding the future progress of the Freehold and Leasehold Reform Act 2024. The Government have formally recognised the “significant complexity of the task” and that the legislation was rushed in at the end of the last parliament and as a result…
Read More →
Rightmove logo
Breaking News

Rightmove’s weekly mortgage tracker 22/11/24

The current average asking price of a typical first-time buyer property is £225,340. For someone taking out an average five-year fixed, 85% LTV mortgage, the average monthly mortgage repayment on this type of home is now £1,104 per month if repaying over 25 years, compared with £1,138 per month a year ago (when the average first-time buyer property asking price was…
Read More →
Estate Agent Talk

The Architecture Of Attention Behind Social Media Addiction

In the digital age, social media platforms have revolutionized how we connect, share, and consume information. Behind their sleek interfaces lies a sophisticated architecture of persuasive technology.  These platforms employ intricate design patterns and technical elements to capture and hold user attention. From subtle visual cues to complex algorithmic systems, every feature serves a calculated…
Read More →
Breaking News

2025 Predictions for the Private Rental Sector

Allison Thompson, National Lettings Managing Director, Leaders Romans Group (LRG) “As we approach 2025, the lettings industry is entering a phase marked by stabilisation and opportunity. Rental inflation has slowed to an average of 3-4% for new lets, reflecting the effects of affordability constraints; renters’ budgets are beginning to limit how much rents can rise.…
Read More →
Breaking News

Response to Matthew Pennycook’s Statement on Leasehold Reform

Yesterday, Secretary of State Matthew Pennycook made a Ministerial Statement on the future of leasehold reform. Responding, Mark Chick, director of ALEP and a Partner at Bishop & Sewell LLP said: ALEP welcomes the ministerial statement which puts in place a timeframe and some objectives for the implementation of the Leasehold & Freehold Reform Act.…
Read More →
Estate Agent Talk

Essential Garage Storage Solutions for Small Spaces

Maximize your garage space with practical storage ideas that keep your items organized and accessible. If you’re dealing with a smaller garage, smart solutions can make a big difference in keeping your space neat and usable. 1.  Wall-Mounted Storage Wall-mounted storage is an excellent way to save space and keep your garage organized, especially in…
Read More →