Construction Industry: Retention Payments

Lord Kirkhope of Harrogate Excerpts

Thursday 14th January 2021 Lords Chamber

[Lord Callanan (Con)]

The noble Baroness is right: this has been going on for a long time and under many different Governments. The complexity of the issues is one reason why no action has been taken so far. As I said, we are committed to working with industry to find a consensus, and we are working with the Construction Leadership Council. We are committed to addressing the related issue of late payments, and we will try to find a consensus on a way forward.

[Lord Kirkhope of Harrogate (Con) [V]]

My Lords, although the consultation process was quite wide, only seven individuals contributed. Does my noble friend agree that, particularly at this time, any arbitrary or unfair retention of moneys due to individual tradesmen and women—whose skills we must retain in the construction industry—exerts a disproportionate pressure on them and the continuation of their specialist services? Is it not time to alleviate the pressures on these people in particular?

[Lord Callanan (Con)]

I agree with my noble friend. We understand that the practice of cash retention can create problems for individuals and businesses in the construction supply chain, due to late payment or non-payment. We are committed to improving payment practices and working with the construction industry to try to take this matter forward.