Small Businesses: Retention

Lord O'Neill of Clackmannan Excerpts

Wednesday 21st February 2018 Lords Chamber

[Lord Henley]

I think the noble Lord is going somewhat beyond the Question on the Order Paper and I do not think I ought to comment on that at this stage. We are looking at the practice of retention. I have made clear where we are, and we will act when appropriate.

[Lord O’Neill of Clackmannan (Lab)]

Is the Minister aware that his consultation process started as a result of an undertaking by one of his colleagues to have a review, which started some two years ago? I declare an interest in this as set out in the register. This is far too long a period to say that we are just awaiting a further consultation. How long does this process have to take and how many businesses are going to go bankrupt? It is not just the Carillions of this world. It is small builders, 95% of which employ fewer than 10 people, who are intimidated by companies from seeking the legal redress which would be the obvious route to get the money to which they are entitled.

[Lord Henley]

The noble Lord is quite right to point out that this started during the passage of the 2016 Act as a result of promises made by my noble friend Lady Neville-Rolfe. We instituted a report into this matter to gather evidence and following that report late last year we instituted the consultation. The consultation ended in January. That is why we are now considering that consultation, and we will act when appropriate.