Nothing has changed on late payment

The Government needs to be bolder and come up with more immediate alternatives to help construction businesses struggling with late payment.

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

The National Federation of Builders (NFB) appreciates the Government’s commitment to put forward plans to crack down on late payment, but these proposals do little to improve the situation of construction companies on the ground.

Measures to strengthen the role of the small business commissioner by giving him power to fine late payers and handing him greater responsibility over the Prompt Payment Code are certainly welcome, but they remain mere proposals which do absolutely nothing to help companies suffering from late payment now.

The Government needs to be bolder and come up with more immediate alternatives to help construction businesses struggling with late payment.

Richard Beresford, chief executive of the NFB, said: “Despite changes to the Prompt Payment Code, 50,000 businesses fail 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: “These proposals for consultation will further expose the failure of the Government to tackle late payment. It’s time to do the right thing and kill off late payment, rather than kicking the can down the road once again. Today’s announcement does not help small construction businesses who are about to go under because they are owed money. Nothing has changed for SMEs.”

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

Home and Living

Top 4 Indications That Your Two Story Home is in Need of Pest Control

Have you noticed tiny pests crawling around your home? Pests are more than just a nuisance. They can cause damage and spread diseases. If you live in a two story home, it can be even harder to spot the signs of an infestation. Knowing what to look for is the key. In this guide, we…
Read More
Estate Agent Talk

Matching Your Needs: Choosing The Ideal Residential Property Management Services

Owning residential properties can be an excellent investment, but managing them can quickly become hard. From handling tenant issues to maintenance and rent collection, it’s a time-consuming task. Fortunately, there is a solution—property management services. They can handle these tasks for you, freeing you to focus on other priorities. However, with so many options available,…
Read More
Breaking News

Third of Private Renters Are Struggling to Afford Their Rents Says New Research

Over a third of all private renters are finding it difficult to afford their rent according to new research out today. Whilst overall 35 per cent of renters said they were finding it difficult or very difficult to afford their rent, this proportion increased to 56 per cent for those not in work due to…
Read More
Home and Living

Why Select High-Quality Shower Drains for Stunning Wet Room Design

A wet room is a fully waterproofed bathroom with an open shower area, where the floors and walls are designed to handle water exposure. One of the most important aspects to consider when designing a wet room is your shower drain. With a great range of available designs, homeowners and those in the construction industry…
Read More
Breaking News

Bank of England’s decision to hold the Base Rate – Industry Reaction

The Bank of England held interest rates at 5.25% for the seventh time in a row. The decision comes despite official figures yesterday which revealed inflation had fallen to the Bank’s target of 2% for the first time in nearly three years. Here are some thoughts from the property industry.   Rightmove’s mortgage expert Matt…
Read More
Breaking News

Breaking Property News – 20/06/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   OpenBrix, Home, & TDS unite to digitally upgrade the tenant user experience Full disclosure Adam Pigott and the team at Openbrix are one of my original and long serving clients in my day job of getting proptechs from MVP to exit (Proptech-PR). But as…
Read More